U.S. 'looking for a deal' with China on trade -WHouse adviser



Trump appears willing to negotiate, and just over the weekend announced his intention to help Chinese electronics maker ZTE, which was on the brink of collapse after USA imposed penalties on it last month for breaking sanctions against Iran and North Korea.

Recently, the tariffs have turned into somewhat of a bargaining chip for the Trump administration as negotiations between Washington and Beijing continue this week.

One area the world's two most powerful economies likely won't be able to address during discussions this week is China's practice of what is known as technology mercantilism, in which it distorts policies and systems in order to expand domestic technology production.

Commerce Secretary Ross last month accused ZTE of misleading the department and warned: "This egregious behavior can not be ignored".

Kudlow also said that the United States and China should both take down trade barriers as part of any agreement. The administration is in contact with China on this issue, among others in the bilateral relationship.

US optical component maker stocks received a boost from the ZTE news, with Acacia Communications (ACIA.O) up 8.7 percent.

ZTE, a company with more than 70,000 employees that has supplied some of the world's biggest telecom companies, said in early May that it had halted its main operations as a result of US action. ZTE, which is based in Shenzhen, announced last week that it had been forced to suspend major operations as a result of the ban, but President Trump has since said he is supporting the company's recovery.

Ross, speaking at the National Press Club, said ZTE "did do some inappropriate things".

This week's meetings follow U.S.

The US initially fined ZTE $1.19 million in March 2017 for violating sanctions against Iran and North Korea. "Obviously, this is part of a very complex relationship between the USA and China that involves economic issues, national security issues and the like". In addition to sparring with China, his team is in talks to rewrite the North America Free Trade Agreement with Mexico and Canada.

"The United States and China are the two biggest economies in the world".

Here are five companies that have high exposure in China that investors should be aware of. The block on ZTE was a heavy blow for the company but also hurt the US companies it buys from. According to IDC data, ZTE sources more than 40 percent of its components from the US, creating a multibillion-dollar revenue stream for suppliers like Qualcomm (QCOM) and Intel (INTC).

China objected to ZTE's punishment at trade talks in Beijing this month, and the American delegation agreed to report their concerns to Trump.

The Wall Street Journal reported Monday that the two countries were in talks about such a potential swap: The U.S. would spare ZTE, and Beijing would drop plans to impose tariffs on U.S. farm products. By cutting off access to USA suppliers of essential components such as microchips, the ban threatens ZTE's existence, the company has said.

But China on Monday welcomed Trump's recent comments.

Trump is seeking to cut the USA trade deficit by $100 billion and to garner new concessions related to sharing technology, a precondition to doing business in China that many companies have complained about.

Foreign Ministry. "We are now in close communication over details of the implementation".

Chinese Vice Premier Liu Yandong is said to be visiting Washington from today until the end of the week to discuss the matters.

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