US and China reportedly close to undoing ban on ZTE

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The reprieve for ZTE came just after Washington and Beijing on Saturday called a halt to a spiralling trade dispute sparked by U.S. accusations of China's unfair trade practices and the alleged theft of USA technology, suspending plans to impose tariffs on as much as $150 billion (roughly Rs. 10.2 lakh crores) in Chinese imports.

Both sides claimed victory on Monday and pledged to continue talking after last week's round in Washington produced pledges that China would import more American energy and agricultural commodities so as to trim the $335 billion annual US goods and services trade deficit with China, although there were no specifics. He did not elaborate.

Trump's latest probe will be conducted under Section 232 of a 1960s trade law, the same tool the president invoked in imposing global tariffs on imported steel and aluminum earlier this year. The EU has so far been exempt from the tariffs, but its reprieve runs out June 1. -China trade talks and said any deal would need "a different structure", fueling uncertainty over current negotiations and sending USA stocks lower.

It was unclear what kind of structure the president had in mind.

Such fees have already attracted the ire of China and other USA trade partners, including the EU, Russia, Japan, India and Turkey, all of which have threatened to levy a combined total of $3.45 billion in retaliatory tariffs on US goods, according to Fortune. But it failed to commit to shrink that deficit by any specific amount.

At a regular foreign ministry briefing in Beijing, a government spokesman said that the joint China-US statement on economic and trade consultations issued at the weekend had covered the matter.

This move was in conjunction with Washington nearing a decision to lift its ban on USA firms supplying Chinese telecoms gear maker ZTE Corp, sources said on Tuesday, further easing trade tensions between the world's two largest economies.

Mnuchin said Commerce Secretary Wilbur Ross would soon be traveling to China to follow up on the discussions held last Thursday and Friday in Washington.

Mnuchin defended the Trump's trade policy, saying he has been "more aggressive than any previous president ever", and is not looking for "short-term gains" but to "create a level playing field and make sure United States technology is protected".

Last month, the administration proposed tariffs on $50 billion of Chinese imports to protest the forced technology transfers.

Mr Trump later ordered Robert Lighthizer to seek up to an additional $US100 billion ($133 billion) in Chinese products to tax.

Just when it seemed like ZTE was on the brink of complete collapse, President Donald Trump said in a tweet this month that he and China's President Xi were "working together" to give ZTE a "way to get back into business, fast". "If the 25 percent tariffs are implemented as proposed, they would represent a tax increase on USA manufacturers and their industrial, commercial, and residential customers valued at about $2.25 billion". Being unable to both buy valuable components nor sell its products in the United States.

But Trump sounded an optimistic note Wednesday.

Trump representatives quickly ran into the stone wall of economic reality and came to understand that although Mexico and Canada are much smaller than the US, they can push back strongly on commercial and political fronts. The tariffs had much more impact on our closest geo-political allies, including Canada, Mexico and the European Union.

Ford still exports some Lincolns to China, and Tesla exports large numbers of electric cars to China despite the current tariff. "We are looking for a permanent exemption".

"We're going to get this right", he said.

Alongside the letter, the Senate Banking Committee has also approved an amendment to a bill that would give regulators more authority to block foreign investment in the U.S., effectively blocking Trump's ability to ease sanctions on ZTE.

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