White House’s Kudlow: Not certain what U.S. will do on China’s ZTE: Politico interview

FAN Editor
National Economic Council's Kudlow attends as U.S. President Trump hosts a joint press conference with Japan's Prime Minister Abe in Palm Beach
FILE PHOTO: Larry Kudlow, Director of the National Economic Council, speaks with another attendee as U.S. President Donald Trump hosts a joint press conference with Japan’s Prime Minister Shinzo Abe at Trump’s Mar-a-Lago estate in Palm Beach, Florida, U.S., April 18, 2018. REUTERS/Joe Skipper

May 15, 2018

WASHINGTON (Reuters) – White House economic adviser Larry Kudlow said on Tuesday it was far from certain what steps the U.S. government would take on China’s ZTE Corp <000063.SZ>, which he characterized as an enforcement, rather than trade, issue.

U.S. President Donald Trump has directed the Commerce Department to revisit penalties for telecom equipment maker ZTE for flouting U.S. sanctions on trade with Iran, saying it is a big customer of U.S. suppliers.

Kudlow was critical of ZTE in an interview with the Politico news outlet, saying it was a “very poorly run company” with “many internal flaws.”

Trump has directed Commerce Secretary Wilbur Ross to review “remedies” for ZTE, Kudlow said.

“This is principally an enforcement issue, by the way. It’s really divorced from the trade story,” Kudlow said.

“I think the issue here is how harsh the remedies, how harsh the enforcement,” Kudlow told Politico. “The issue here is not simply letting them off but perhaps to do so in a manner that they could conceivably go back into business. I don’t want to get that far down the road but I think that’s the intent.”

Trump, who campaigned for the White House pledging to get even with China on trade practices that hurt American consumers, faced backlash from Republican and Democratic lawmakers after he promised to work with Chinese President Xi Jinping to help ZTE, saying too many jobs in China had been lost.

The company shut its main operations after the Commerce Department last month banned U.S. companies from selling components to ZTE for seven years for violating the terms of a settlement deal for illegally shipping goods made with U.S. parts to Iran and North Korea.

“We don’t know what the outcome is going to be – I can’t possibly say here,” Kudlow said.

Republican U.S. Senator Marco Rubio, who has voiced his opposition to any softening on ZTE since Trump’s announcement on Sunday, weighed in again on Tuesday.

“Clearly President Xi personally intervened for #ZTE but replacing sanctions with fine of $300/$400 million is not a good deal,” Rubio said on Twitter. “We have leverage to bring fairness back to relationship with #China whose other tech firms Tsinghua,Huawei,BBK,Yiomi & Lenovo rely on U.S. chips as well.”

(Reporting by Susan Heavey and Doina Chiacu; Editing by Chizu Nomiyama, Steve Orlofsky and Andrea Ricci)

Free America Network Articles

Leave a Reply

Next Post

Samsung in talks with ZTE, others to supply mobile processor chips: executive

FILE PHOTO: Samsung Electronics’ Exynos 9 series mobile processor chips are seen in this undated handout picture provided by Samsung on May 14, 2018. Samsung Electronics/Handout via REUTERS May 15, 2018 By Joyce Lee and Ju-min Park HWASEONG, South Korea (Reuters) – Samsung Electronics is in talks with several smartphone […]