The various punishments imposed by the US government on ZTE have made the Chinese government intervene in overcoming the problem.
In a recent report, it said that the Chinese government is approaching the US government to request a reduction in penalties for ZTE. Citing two trusted sources with the matter, the Chinese government asked the US to reduce the penalty prohibiting US companies from doing business with ZTE, which is currently set for 7 years.
Trump later announced that he would help rescue ZTE, Trump said this was done so that ZTE can get back to business quickly. ZTE is subject to financial sanctions and a ban on importing advanced technology components from US companies for selling telecommunications products to North Korea and Iran in 2017.
The cessation of major business operations of the Shenzen-based company, as mentioned by Trump, caused many people in China to lose their jobs. ZTE is dying of punishment from the US Department of Commerce.
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Trump tweeted after a ban on US exports to sales of advanced components to Chinese technology companies has about three weeks ago. The offer is made ahead of a trade summit between the two countries which will be held this week in the US.
"The US and China are working equally well on the trade but the negotiations that have gone too far in favor of China for years. So it is difficult for them to make a deal that benefits both countries, "Trump said as quoted by Reuters on Sunday, May 13, 2018." But calm down, it will be solved. "
The US and Chinese governments engage in trade wars by raising import tariffs on each other. Trump began by raising tariffs on steel and aluminum imports from China by 25 and 10 percent respectively.
China retaliated by raising tariffs on agricultural imports from the US with similar tariff rates. This tariff war continues to the sophisticated technology products such as electronics from China and aircraft components from the US. The tariff war is about import value of about $100 B
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