13 before the tariff list was announced the committee

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13 Before the tariff list was announced, the Committee on Foreign Investment in the US (CFIUS), with expanded power granted by the White House, had already blocked several Chinese Government - backed acquisitions of US high tech companies in order to protect national security and sensitive civil data ’. On April 16, 2018 Commerce Secretary Wilbur Ross banned US export privileges for ZTE Corp and affiliates for seven years, putting the business of the Shenzhen based smartphone maker at risk. For ZTE this was a fatal blow - the company sources nearly 30 percent of its components like micro - processing chips, components in its networking equipment and smartphones from US companies, like Intel and Qual- comm, industry leaders in producing these. Soon thereafter, trading of ZTE stock was suspended on Chinese markets, in Hong Kong and Shenzhen, and less than a month later, on May 9, 2018, ZTE announced the closure of its main business op- erations. On May 13, 2018, Trump tweeted that he and Chinese President Xi Jinping were working together to give ZTE Corporation, a way to get back into business, fast as there were too many jobs in China lost. Trump announced that he had instructed US Commerce Secretary Wilbur Ross to get it done. The following day, however, Ross contradicted the President by saying that ZTE would not be subject to trade negotiations: Our position has been that that s an enforcement action separate from trade. 14 China s Ministry of Commerce re - launched its review of the US chipmaker Qualcomm s purchase of Dutch competitor NXP, and Chinese negotiators were reportedly willing to remove tariffs on US agricultural products in exchange for relief for ZTE. The potential reprieve has prompted critics, including some 13. Michael Lelyveld, China's ZTE Seeks to Ease US Export Ban ”, April 3, 2018, available at: - zte - seeks - to - ease - us - export - ban - 04302018105144.html 14. Roncevert Ganan Almond, Ring Of Fire: Tremors and Eruptions in the US - China Trade War ”, The Diplomat, April 12, 2018, available at: ring - of - fire - tremors - and - eruptions - in - the - u - s - china - trade - war/
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US - CHINA Trade War: Analyses of Deeper Nuances and Wider Implications 16 members of his own party, to accuse Mr Trump of caving in to a company that has raised national security concerns. Existing sanctions, including US tariffs on steel and aluminium and Chinese tariffs on US products such as wine, remain in effect. In the long run, however, the sanctions would function as a stimulus for Chinese high - tech enterprises to invest in the development and manufacture of the key components that they had long relied on the overseas market. Since 2013, each year China has imported more than $220 billion chips and integrated circuit components, or twice the annual cost of its imported oil. For most Chinese compa- nies, buying such components has been the most cost - effective way to do business. They see no necessity to produce them on their own, which entails huge and long - term investments. As a result, China has consumed as much as 59
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