Plan B Forum

The White House and senior Chinese officials are discussing a targeted economic deal that would relax severe penalties on ZTE, a major Chinese telecom company, in exchange for unspecified demands from President Trump, two people briefed on the discussions said Sunday.

The talks are fluid, and President Trump has shown a willingness to veer between extremes in how he interacts with Beijing. But Trump said Sunday on Twitter that he wanted federal regulators to take the unusual step of relaxing penalties on ZTE, even though the Chinese company has been accused of illicitly shipping goods to North Korea and Iran.

What Trump didn’t reveal publicly is how much the company has become a bargaining chip as the White House tries to extract trade-related concessions from China while pushing for cooperation on sanctions against Iran and North Korea, the people said.

Trump pledged on Sunday to help ZTE return to business, days after the company said it would "cease major operating activities" because of the U.S. government’s recent trade restrictions. Those restrictions bar U.S. firms for seven years from exporting critical microchips and other parts to ZTE.

“President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast,” Trump tweeted. “Too many jobs in China lost. Commerce Department has been instructed to get it done!”

The comment marked a sharp shift in tone for a president who has long accused China of stealing U.S. jobs. The Treasury and Commerce departments had been strongly aligned against ZTE as recently as several days ago in one of the toughest actions to date against a Chinese company.

With Trump’s tweet, some officials familiar with the ZTE issue believe a compromise is possible. “A mini-deal is in sight,” said a person familiar with the matter. “China gets relief for ZTE, and in exchange agrees to return to the status quo for U.S. agriculture,” easing tariffs and implementing other non-tariff remedies.

But the talks have not been amicable. Chinese President Xi Jinping has been irate about the sanctions on ZTE, and his top economic adviser, Liu He, has told U.S. negotiators that there is no chance of a deal without the United States removing the seven-year ban on ZTE, said the person, who spoke on condition of anonymity to discuss a sensitive matter.

In a statement, White House spokeswoman Lindsay Walters said: “The President’s tweet underscores the importance of a free, fair, balanced, and mutually beneficial economic, trade and investment relationship between the United States and China. The administration is in contact with China on this issue, among others in the bilateral relationship. President Trump expects [Commerce] Secretary [Wilbur] Ross to exercise his independent judgment, consistent with applicable laws and regulations, to resolve the regulatory action involving ZTE based on its facts.”

ZTE did not respond to requests for comment.

Trump Indonesia project is latest stop on China’s Belt and Road

Project is part of the Lido City development in Jakarta and is the first to link the US president’s business interests to Beijing’s epic infrastructure plan

PUBLISHED : Friday, 11 May, 2018, 11:17pm
UPDATED : Tuesday, 15 May, 2018, 8:25pm

A billion-dollar Indonesian property development with ties to Donald Trump has become the latest project in China’s globe-spanning Belt and Road infrastructure project – just as Washington and Beijing are tussling over trade.

A subsidiary of Chinese state-owned construction firm Metallurgical Corporation of China (MCC) signed a deal with Indonesia’s MNC Land to build a theme park outside Jakarta as part of the ambitious project, the company said on Thursday.

The deal is the latest to raise questions about the extent of Trump’s financial exposure to Beijing. [ya think?]

The park – expected to be backed with up to US$500 million in Chinese government loans – is part of an “integrated lifestyle resort”, known as MNC Lido City.

The project includes Trump-branded hotels, residences and a golf course, as well as other hotel, shopping and residential developments.

Referring to its subsidiary, MCC described the theme park as “the first culture and tourism industry project by the Central Research Institute of Building and Construction” and was “in response to” China’s Belt and Road Initiative.

It is also the first project to link the US president’s business interests to China’s signature infrastructure initiative, [Who wants to bet it won't be the last?]which aims to connect the world’s second-largest economy with Africa, Asia and Europe through a vast network of ports, railways, roads and industrial estates.