Trump decides to save Chinese automaker ZTE and its employees. He posted a tweet in which he said he was working with the Chinese president to find a solution. The automaker was banned from purchasing essential components from U.S. suppliers because it violated the embargo by selling products to Iran and North Korea.
Update 05/16/2018: According to AFP, the Chinese government agreed last week to make a $500 million loan for the construction of a huge amusement park near Jakarta, Indonesia. A project that includes the establishment of Trump-stamped hotels, residences and golf courses, whose companies have a lot to gain from the deal. Donald Trump’s ZTE bailout was announced three days later.
Donald Trump has decided to reach out to ZTE who had to stop selling smartphones. The U.S. Commerce Department had found evidence that the company had violated an embargo by reselling products to Iran and North Korea and made the decision to punish the automaker by prohibiting it from supplying from U.S. suppliers for seven years. In his tweet, the US president said:“Chinese President Xi and I are working together to give the big Chinese phone company, ZTE, a way to get back to work quickly. Too many jobs lost in China. The Commerce Department has been tasked with doing so.”
ZTE: Trump wants to save the company so it “gets back to work quickly”
The Chinese manufacturer is now on the verge of being rescued with Trump as an ally. ZTE’s production plants are shut down, unable to purchase essential components for the manufacture of its smartphones. ZTE has a habit of using American Qualcomm for its SoC and has not been able to source. In addition, Trump recently blocked Broadcom’s takeover of Qualcomm accused of serving China’s interests.
In any case, ZTE seems to have found a way out. The automaker had previously announced that it was in talks with U.S. authorities. A general meeting of shareholders was postponed to allow the company to make a decision about its future. It had been mentioned that the manufacturer could sell its mobile business to a competitor(Xiaomi, Oppo or Huawei)or turn to other partners for the manufacture of its smartphones. Finally, another solution will probably be found with the support of the American president.
President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!
— Donald J. Trump (@realDonaldTrump) May 13, 2018
