Trade War with China

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Opinion: Trump says trade deficit with China is bad, but how do economists see it?
2018-05-25 12:13 GMT+8

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A trade deficit is the difference between exports and imports. And for the United States it’s often negative. It has been negative with China for about close to 20 years and it has grown because the US has consumed more goods from China than it has exported to China.

One reason for this is that US firms often set up shops in China as part of foreign direct investment (FDI) in China in order to produce goods using cheap labor and then re-export them back to the United States.

These companies, these multinational firms create a lot of profit and at the same time generate jobs in the service sector in the United States by hiring people who do advertising or marketing or other financial aspects for their companies.

In addition to that, a lot of goods are simply processed in China. So that means that some goods are produced in other nations especially in East and Southeast Asia, and they’re processed or put together in China and then re-exported to the United States.

So it’s far more complex than China just producing goods and sending them over to the US, and the US shipping goods to them.

Now, some people consider trade deficit as something that is very bad. While others see it as something that is relatively neutral. President Trump has pointed to it as a symbol of US weakness. And other China hawks have viewed it as a way in which China has attempted to exploit the United States.

Economists don’t see it that way. One reason is that it makes consumption for American households far cheaper than if American firms simply produce goods in the United States, in which case they would have to pay far higher wages.

Certainly it has reduced the number of manufacturing jobs that are housed in the United States, because labor in developing countries like China or Vietnam is far cheaper than it is here.

So, China takes the dollars that we used to pay for goods imported from China and they can either hold the dollars in terms of reserves or invest the funds in the United States mainly in the form of treasury bonds. So they’re holding US debt which allows America to spend more overall. So in general, it has been a positive for United States.

President Trump misunderstands and misinterprets what trade deficit is. He seems to view it as a debt. A win-or-lose game, a zero-sum game. When in actuality, most economists view trade as a win-win solution. Because in most cases, countries export the goods that they have a comparative advantage in, that are relatively cheaper for them to produce, and they import goods that are relatively more expensive for them to produce.

And so in this way, both countries are thought to win out from trade. So a trade deficit is merely a measure of exports and imports. It’s not about who is winning or who is losing.

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U.S. soybean association pleased with eased trade tension with China
Xinhua 2018-05-25 10:45:03

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American Soybean Association(ASA) leaders are pleased as a potential trade war between China and the United States has been suspended, local media WNAX reported on Thursday.

Last week, China and the United States had economic and trade consultations in Washington.

According to a joint statement issued on Saturday, the two sides agreed to take effective measures to substantially decrease the U.S. trade deficit in goods with China, and China will significantly increase its purchase of U.S. products, especially agricultural and energy products.

ASA Board member Kevin Scott said he is pleased with the progress made by both sides. "I am hoping this will lead to better trade relations with China," he said.

China is the world's biggest buyer of U.S. soybeans, having imported a total of 27.5 million tons in 2017, according to the U.S. Department of Agriculture. In money terms, it represents an approximately 14-billion-dollar business annually.

"As the consultations advance, it's important to keep the lines of communication open, as well as build on the positive trade relationships already established," said Scott.

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Jura said:

now I read
Opinion: Trump says trade deficit with China is bad, but how do economists see it?
2018-05-25 12:13 GMT+8

Please, Log in or Register to view URLs content!

Click to expand...

And so in this way, both countries are thought to win out from trade. So a trade deficit is merely a measure of exports and imports. It’s not about who is winning or who is losing.

Click to expand...

Tell that to those mindless Trump supporters out there. They don't care if it's facts or not, they just want to hate and blame something so that they can feel good about themselves. They will continue to blame the "liberal" movement for all of America's demised.

Trump says ZTE will pay $1.3 billion fine, overhaul its management to continue its business with the US.




A Chinese smartphone company is ready to cash in on ZTE losing its smartphone business.

U.S. reaches deal to keep China's ZTE in business: congressional aide


WASHINGTON (Reuters) - The Trump administration told lawmakers the U.S. government has reached a deal to put Chinese telecommunications company ZTE Corp back in business after it pays a significant fine and makes management changes, a senior congressional aide said on Friday.
U.S. President Donald Trump appeared to confirm the deal in a tweet late on Friday. “I closed it down then let it reopen with high level security guarantees, change of management and board, must purchase U.S. parts and pay a $1.3 Billion fine.”
The reported deal involving China’s second-largest telecommunications equipment maker ran into immediate resistance in Congress, where Democrats and Trump’s fellow Republicans accused him of bending to pressure from Beijing to ease up on a company that U.S. intelligence officials have suggested poses a significant risk to U.S. national security.
ZTE was banned in April from buying U.S. technology components for seven years for breaking an agreement reached after it violated U.S. sanctions against Iran and North Korea.. After ZTE makes a series of changes it would now be allowed to resume business with U.S. companies, including chipmaker Qualcomm Inc.
The deal, earlier communicated to officials on Capitol Hill by the Commerce Department, requires ZTE to pay a substantial fine, place U.S. compliance officers at the company and change its management team, the aide said.
The Commerce Department would then lift an order issued in April preventing ZTE from buying U.S. products. ZTE shut down most of its production after the ruling was announced.
Fox News said Trump told them on Thursday that he had negotiated the $1.3 billion fine with Chinese President Xi Jinping in a phone call.
ZTE, which is publicly traded but whose largest shareholder is a Chinese state-owned enterprise, agreed last year to pay a nearly $900 million penalty and open its books to a U.S. monitor. The penalty stemmed from for breaking an agreement after it was caught illegally shipping U.S. goods to Iran and North Korea, in an investigation dating to the Obama administration.
The company has lost over $3 billion since the April 15th ban on doing business with U.S. suppliers, according to a source familiar with the matter.
Trump on Tuesday floated a plan to fine ZTE up to $1.3 billion and shake up its management as his administration considered rolling back more severe penalties that have crippled the company.
Responding to news of the administration’s deal with ZTE, Republican Senator Marco Rubio tweeted: “Yes they have a deal in mind. It is a great deal ... for #ZTE & China. #China crushes U.S. companies with no mercy & they use these telecom companies to spy & steal from us.”
Rubio, as well as Democratic Senators Chuck Schumer and Chris Van Hollen, said Congress should act to stop Trump from letting ZTE get back into business. “If the administration goes through with this reported deal, President Trump would be helping make China great again,” Schumer said Friday on Twitter. “Would be a huge victory for President Xi, and a dramatic retreat by Pres Trump. Both parties in Congress should come together to stop this deal in its tracks.”
U.S. intelligence and U.S. law enforcement agencies have serious concerns that ZTE and other Chinese telecommunications firms use their equipment to gather intelligence on U.S. citizens.
The U.S. Department of Defense has also stopped selling ZTE’s mobile phones and modems in stores on its military bases, citing potential security risks.
William Evanina, the acting director of the National Counterintelligence and Security Center, said at his May 15 confirmation hearing that he would not use a ZTE phone nor recommend that anyone in a sensitive position in government use one.
Chinese officials sought a pullback on ZTE as part of any broader deal to prevent a trade war between the world’s two biggest economies. U.S. Commerce Secretary Wilbur Ross is scheduled to visit China next week for another round of talks. White House legislative director Marc Short told PBS Friday that Ross “would be making that announcement in the coming day” of a resolution of the ZTE issue.
ZTE needs U.S. components for its mobile phones and network equipment. U.S. companies provide an estimated 25 percent to 30 percent of components in ZTE’s equipment.
As part of the agreements ZTE made last year it dismissed four senior employees.
Shares of ZTE’s U.S. suppliers traded higher on Friday. Optical networking equipment maker Acacia Communications Inc, which got 30 percent of 2017 revenue from ZTE, rose 4.4 percent. Optical component company Oclaro Inc, which received 18 percent of its fiscal 2017 revenue from ZTE, rose 2.7 percent.
FILE PHOTO - Visitors pass in front of the Chinese telecoms equipment group ZTE Corp booth at the Mobile World Congress in Barcelona, Spain, February 26, 2018. REUTERS/Yves Herman/File Picture
Reuters reported earlier this week citing sources that a proposed trade deal with China would lift the ZTE ban. In return, China would eliminate tariffs on U.S. agriculture or agree to buy more farm products from the United States.
Reporting by Roberta Rampton and Doina Chiacu; Additional reporting by Jonathan Landay; Writing by Chris Sanders; Editing by Meredith Mazzilli, Tom Brown and Diane Craft

In the long ru China need to strike independent path in Chip manufacturing It is a long struggle and it will take time but there is no choice the clarion call is ringing
Here is an interesting article about effort to build advance semiconductor via Don Juan


Chinese chipmaker takes on TSMC and Intel with cutting-edge tool

SMIC's $120m order shows zeal to hone domestic tech amid US trade spat

CHENG TING-FANG, Nikkei staff writer
May 15, 2018 21:02 JST

TAIPEI -- Semiconductor Manufacturing International Co., China's top state-backed contract chipmaker, has placed an order for one set of extreme-ultraviolet lithography equipment, the costliest and most advanced chip production tool, to close technology gaps with market leaders and to secure the supply of critical gear amid trade tensions between the U.S. and China, according to people familiar with the matter.

The company's move to purchase its first EUV lithography equipment from Dutch chip gear builder ASML, worth $120 million, highlights its growing ambition to help boost Chinese homegrown semiconductor manufacturing technology, even though it is still two to three generations behind market leaders. The move also secures the supply of the cutting-edge lithography tool that all top global chip giants, including Intel, Samsung Electronics and Taiwan Semiconductor Manufacturing Co., are buying to ensure the later production of more powerful and advanced chips.

TSMC, Intel and Samsung have already ordered many EUV systems from ASML. TSMC, the world's biggest contract chipmaker by revenue, for instance, has booked up to 10 systems for this year
, according to supply chain sources. Samsung has booked roughly six EUV systems, while Intel will take about three for 2018, these people said.


SMIC has reserved some funding from the Chinese government for the expensive equipment that costs roughly the same amount as last year's net profit of $126.4 million, the source said. SMIC's reserved EUV system is expected to be delivered by 2019, according to the source.

There have long been restrictions on the ability of cutting-edge chip manufacturing equipment to be sold or shipped to China. The restrictions have been justified through the Wassenaar Arrangement, a multinational voluntary export-control compliance that covers the export of technologies that could have military uses. But companies can obtain exemptions to such restrictions.

A spokesperson for ASML told the Nikkei Asian Review that it treats customers worldwide, including its Chinese clients, equally and there are no restrictions according to the Wassenaar Arrangement to sell EUV equipment to Chinese customers. The Dutch company declined to comment on whether SMIC placed an EUV system order, as well as on orders from TSMC, Intel and Samsung. ASML is the exclusive provider globally for such advanced equipment.

SMIC did not immediately respond to requests by Nikkei for comment.

The U.S. and China are currently negotiating trade issues. U.S. President Donald Trump in a tweet on Monday appeared to justify his 180-degree turn on a previous decision by his administration to ban ZTE from acquiring U.S. parts.

A day earlier, Trump said he and Chinese President Xi Jinping were working to give ZTE "a way to get back into business, fast."

Even if Trump reverses the U.S. ban on ZTE, in a show of goodwill ahead of a new round of trade talks in Washington, the previous harsh crackdown on ZTE and moves to pose tariffs have already sent clear warnings to Beijing that China needs to advance its own chip technology to reduce heavy foreign reliance as quickly as possible.

EUV lithography equipment is crucial in future chip technology development and has long been viewed as a savior to the so-called Moore's Law. The EUV system can emit light with wavelengths one-fifteenth as small as the current equipment, enabling it to etch finer circuits on a chip.

Moore's Law is the notion of physics proposed by Intel co-founder Gordon Moore in 1965 that says every two years or so the number of transistors on a chip will double, and thus the performance of chips will advance accordingly. Many are worried that this idea, which has driven the semiconductor industry for the past four decades, could come to a halt because it could become too difficult to fit so many transistors on a tiny chip.

Leading chip manufacturers are still working to install and test EUV lithography tools, as none previously have successfully produced such advanced chips and there are still challenges to overcome.

"The EUV scanner, if successfully installed, could help reduce cycle time and replace some very complicated processes in producing advanced chips," said Lin Jian-hung, an analyst at the Topology Research Institute. "But the new equipment also requests many new materials to support and also needs to undergo many tests."

Currently, core processor chips for Apple's premium iPhone X and iPhone 8 range adopted TSMC's 10-nanometer process technology, while the upcoming new iPhones this year would use 7-nanometer process technology.

The smaller the nanometer size, the more expensive and challenging to develop, and the more powerful and advanced the chips are. There is an industry consensus that the cutting-edge chip manufacturing process technology will be smaller than 5-nanometer and will require an EUV tool to complete.

On the business side, SMIC is a smaller rival of market leader TSMC in manufacturing chips for others, known as the foundry segment, and counts Qualcomm, Huawei's chip arm Hisilicon Technologies, and other chip designers as clients.

SMIC is roughly two to three generations behind TSMC, Samsung and Intel in terms of manufacturing technology. Samsung is the world's biggest memory chipmaker, while Intel dominates the segment for microprocessors for personal computers and servers.

SMIC is still working to improve its own 28-nanometer process technology and last year brought in Liang Mong-song, a former senior executive at Samsung and TSMC, to be its co-chief executive to help develop its 14-nanometer process technology. Samsung and TSMC are now racing to manufacture 7-nanometer chips.

"SMIC's effort shows that it will continue investing in semiconductor technologies despite the high expense and even if it takes years for it to catch up with the industry leaders," said an industry manager familiar with the matter. "Buying such costly equipment does not guarantee success for SMIC's chip technology development, but it at least shows the commitment."

For the January-March quarter, SMIC generated $831.04 million in revenue -- which includes $107.6 million in a tech license fee gain from a joint-venture. Net income for the period plunged almost 58% year-over-year to $29.37 million.

Still, the company revised up its full-year capital expenditure for chip production to $2.3 billion from $1.9 billion for 2018, citing increasing spending for manufacturing and research-and-development equipment, and the construction of new facilities, according to Zhao Haijun, co-chief executive of SMIC in an earnings call on May 10.

"We forecast China [chip designers] will continue to grow 20% per year for the next couple of years," Zhao said. "We [as the homegrown contract chipmaker] are well-positioned to capture the meaningful prospect and to expand our addressable market by accelerating the development of our technology."

Nikkei staff writer Lauly Li contributed to this report.

This family chip is the 2nd most important class of chip after SOC via xyz

本土企业射频芯片设计开发取得重要进展
2018年05月14日 15:29:21 来源： 新华网


Local company RF chip design and development made important progress
May 14, 2018 15:29:21 Source: Xinhuanet


Xinhua Net Hai, May 14 (Reporter Pan Qing) As the country continues to increase its support for the IC industry, China's chip design industry has shown rapid development. Asterek (Shanghai) High-frequency Communication Technology Co., Ltd., founded by Dr. Huang Fengyi, an expert of the "Thousand People Project" of Shanghai, recently released three chips, showing that local companies have achieved important importance in the design and development of RF SoCs. progress.

It is understood that the three independently designed and developed core chips cover wide-band, reconfigurable, and high-bandwidth chips, and are mainly aimed at the radio frequency chip market for high-end applications, and can be widely used in the fifth-generation mobile communications (5G) and ultra-high speeds. Wireless Internet of Things, RF sensors, satellite communications and special high-bandwidth communications, navigation, radar and other systems.

Two of the chips and field effect transistor RF model technologies were identified in April this year by experts from Beijing University, Chinese Academy of Sciences, and China Electronics Technology Group Co., Ltd., which showed that "the results have reached the international advanced level." Among them, the performance of nearly 20 comprehensive performance indicators of a chip is compared with the results of international products and publications. Five indicators are close to the international first-rate level, seven key indicators have reached world-class standards, and seven key indicators are better than international reports. The best level.

It is understood that the Huang Fengyi team has made breakthroughs in the field of RF chip component models. In 2006, it created a characteristic function method for inductance and other components for parameter extraction and structural optimization of the inductive model. The research results were published in the IEEE JSSC, authoritative journal of the international IC industry, and the authoritative journal of microelectronics, Electronic Devices. Express (IEEE EDL) was selected by the Chinese core journal "Science and Technology Review" as 2006 "China's major scientific progress."

In terms of the most widely used field effect transistor model for integrated circuit chips, the Huang Fengyi team has spent more than 10 years of research and exploration. At the end of 2016, it discovered a new channel effect in the RF model structure of deep sub-micron and ultra-high-speed transistors, breaking through the international The industry has used core channel units for more than 30 years. This achievement was published in the "Electronic Device Letter."

As the basis of the information industry, integrated circuit chip technology is at the forefront of today's international high-tech fields. China is the world's largest chip market, but started relatively late in related fields, and most chips still rely on imports. Statistics of the General Administration of Customs show that in 2016 and 2017, the total import volume of integrated circuit chips in China exceeded RMB 1 trillion, which was higher than the import volume of crude oil during the same period.

In view of this situation, the “Outline for the Promotion of the National IC Industry Development” released in 2014 proposes that the gap between the IC industry and the international advanced level be gradually reduced by 2020, and the average annual growth rate of sales revenue of the entire industry will exceed 20%. The development capability has been greatly enhanced. Integrated circuit design technologies such as mobile smart terminals, network communications, cloud computing, Internet of Things, and big data have reached international advanced levels, and an industrial ecosystem has taken shape.

With the support of relevant policies, China's chip industry has grown rapidly, and progress in design and development has been particularly remarkable. According to data from the Semiconductor Industry Association, total sales of China's IC industry in 2017 were 541.1 billion yuan, of which the design industry accounted for 38%.

Taking the above-mentioned AiSiike project as an example, successful research and development of relevant technologies and products shows that in the two major areas of high-end RFIC chip design and RF component model, some of China's frontier technology development has approached the international advanced level. According to industry evaluations, the autonomy of radio frequency integrated circuit chips, such as mobile communications and radar, can accelerate the upgrading of China's communications industry and promote the pace of 5G deployment.

China face formidable barrier against the duopoly of Intel, Microsoft and Qualcomm, google
Via Don Juan but she just has to keep trying

Three China foundries gearing up for transition to sub-10nm process technology

Cindy Yu, Taipei; Jessie Shen, DIGITIMES

 Thursday 24 May 2018

Semiconductor Manufacturing International (SMIC) and Huali Microelectronics, and memory foundry specialist Yangtze Memory Technologies (YMTC) are all gearing up for transition to sub-10nm process technology with respective deployments kicking off this year.

SMIC has reportedly ordered a set of extreme ultraviolet (EUV) production equipment from ASML for nearly US$120 million. The largest China-based pure-play foundry is looking to enter risk production of chips built using 14nm FinFET process in the first half of 2019, and will move forward with its plan to incorporate the EUV technology into its 7nm process, according to company sources.

SMIC is expected to receive its first EUV production tools in early 2020 enabling the foundry to step up deployments in the sub-10nm processes, the sources said.

SMIC has revised upward its capex target for 2018 to US$2.3 billion from US$1.9 billion. Capex this year will be used for advanced process R&D, equipment purchases and capacity expansions, the company disclosed previously.

SMIC co-CEO Liang Mong-song will play a key role in assisting the company to accelerate the development of advanced process technology. Liang said at the company's most recent investors meeting that SMIC will kick off risk production of its 14nm FinFET process and venture into the AI (artificial intelligence) chip sector in the first half of 2019 after entering volume production of 28nm HKC+ process in the second half 2018.

Fellow 12-inch foundry Huali has installed ASML's TWINSCAN NXT:1980Di immersion lithography system at its FAB6, where the company will be fabricating 14nm FinFET chips, according to company sources. Huali will be investing a total of CNY38.7 billion (US$6.06 billion) in the construction of FAB6, which is designed for production capacity of 40,000 12-inch wafers monthly.

Huali expects to begin pilot operations at FAB6 by the end of 2018, and have the new fab ready for commercial production by the end of 2022. The fab will focus on the fabrication of logic ICs built using 28nm, 14nm and more advanced process technologies.

Memory-IC foundry YMTC under China's state-owned Tsinghua Unigroup has its first 193nm immersion lithography system delivered recently, according to company sources. The equipment priced at US$72 million will be used for the production of 20nm and 14nm chips.

As YMTC is gearing up for volume production of its in-house developed flash memory chips, the company will be engaged in equipment installations at its factory site in Wuhan over the next several months, the sources said. YMTC plans to build a total of three 3D NAND flash fabs for US$24 billion.

YMTC recently held a ceremony to mark equipment move-in at its first 12-inch fab designed for 300,000 wafers in monthly capacity. Construction of the fab was completed in September 2017, and the fab is ready for volume production later in 2018, the sources indicated.

YMTC has obtained its first orders for commercial production of over 10,000 32-layer 3D NAND flash chips, Charles Kau, acting chairman of YMTC and executive VP of Tsinghua Unigroup, was quoted in previous reports. The company is looking to be capable of producing 64-layer 128Gb 3D NAND products in 2019 to narrow its technological gap with industry leaders within two years.

antiterror13 said:

U.S. reaches deal to keep China's ZTE in business: congressional aide

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WASHINGTON (Reuters) - The Trump administration told lawmakers the U.S. government has reached a deal to put Chinese telecommunications company ZTE Corp back in business after it pays a significant fine and makes management changes, a senior congressional aide said on Friday.
U.S. President Donald Trump appeared to confirm the deal in a tweet late on Friday. “I closed it down then let it reopen with high level security guarantees, change of management and board, must purchase U.S. parts and pay a $1.3 Billion fine.”
The reported deal involving China’s second-largest telecommunications equipment maker ran into immediate resistance in Congress, where Democrats and Trump’s fellow Republicans accused him of bending to pressure from Beijing to ease up on a company that U.S. intelligence officials have suggested poses a significant risk to U.S. national security.
ZTE was banned in April from buying U.S. technology components for seven years for breaking an agreement reached after it violated U.S. sanctions against Iran and North Korea.. After ZTE makes a series of changes it would now be allowed to resume business with U.S. companies, including chipmaker Qualcomm Inc.
The deal, earlier communicated to officials on Capitol Hill by the Commerce Department, requires ZTE to pay a substantial fine, place U.S. compliance officers at the company and change its management team, the aide said.
The Commerce Department would then lift an order issued in April preventing ZTE from buying U.S. products. ZTE shut down most of its production after the ruling was announced.
Fox News said Trump told them on Thursday that he had negotiated the $1.3 billion fine with Chinese President Xi Jinping in a phone call.
ZTE, which is publicly traded but whose largest shareholder is a Chinese state-owned enterprise, agreed last year to pay a nearly $900 million penalty and open its books to a U.S. monitor. The penalty stemmed from for breaking an agreement after it was caught illegally shipping U.S. goods to Iran and North Korea, in an investigation dating to the Obama administration.
The company has lost over $3 billion since the April 15th ban on doing business with U.S. suppliers, according to a source familiar with the matter.
Trump on Tuesday floated a plan to fine ZTE up to $1.3 billion and shake up its management as his administration considered rolling back more severe penalties that have crippled the company.
Responding to news of the administration’s deal with ZTE, Republican Senator Marco Rubio tweeted: “Yes they have a deal in mind. It is a great deal ... for #ZTE & China. #China crushes U.S. companies with no mercy & they use these telecom companies to spy & steal from us.”
Rubio, as well as Democratic Senators Chuck Schumer and Chris Van Hollen, said Congress should act to stop Trump from letting ZTE get back into business. “If the administration goes through with this reported deal, President Trump would be helping make China great again,” Schumer said Friday on Twitter. “Would be a huge victory for President Xi, and a dramatic retreat by Pres Trump. Both parties in Congress should come together to stop this deal in its tracks.”
U.S. intelligence and U.S. law enforcement agencies have serious concerns that ZTE and other Chinese telecommunications firms use their equipment to gather intelligence on U.S. citizens.
The U.S. Department of Defense has also stopped selling ZTE’s mobile phones and modems in stores on its military bases, citing potential security risks.
William Evanina, the acting director of the National Counterintelligence and Security Center, said at his May 15 confirmation hearing that he would not use a ZTE phone nor recommend that anyone in a sensitive position in government use one.
Chinese officials sought a pullback on ZTE as part of any broader deal to prevent a trade war between the world’s two biggest economies. U.S. Commerce Secretary Wilbur Ross is scheduled to visit China next week for another round of talks. White House legislative director Marc Short told PBS Friday that Ross “would be making that announcement in the coming day” of a resolution of the ZTE issue.
ZTE needs U.S. components for its mobile phones and network equipment. U.S. companies provide an estimated 25 percent to 30 percent of components in ZTE’s equipment.
As part of the agreements ZTE made last year it dismissed four senior employees.
Shares of ZTE’s U.S. suppliers traded higher on Friday. Optical networking equipment maker Acacia Communications Inc, which got 30 percent of 2017 revenue from ZTE, rose 4.4 percent. Optical component company Oclaro Inc, which received 18 percent of its fiscal 2017 revenue from ZTE, rose 2.7 percent.
FILE PHOTO - Visitors pass in front of the Chinese telecoms equipment group ZTE Corp booth at the Mobile World Congress in Barcelona, Spain, February 26, 2018. REUTERS/Yves Herman/File Picture
Reuters reported earlier this week citing sources that a proposed trade deal with China would lift the ZTE ban. In return, China would eliminate tariffs on U.S. agriculture or agree to buy more farm products from the United States.
Reporting by Roberta Rampton and Doina Chiacu; Additional reporting by Jonathan Landay; Writing by Chris Sanders; Editing by Meredith Mazzilli, Tom Brown and Diane Craft

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God damn it, I really didn't want this to happen. I hope congress blocks it. I don't want ZTE to have any excuse to get lazy and reliant on the US again. If ZTE keeps their sights straight and uses this as a temporary plug while still plowing full speed to technological independence from the US, I guess it's fine but if they collapse like an opium addict given a new fix, I'm gonna puke.

manqiangrexue said:

God damn it, I really didn't want this to happen. I hope congress blocks it. I don't want ZTE to have any excuse to get lazy and reliant on the US again. If ZTE keeps their sights straight and uses this as a temporary plug while still plowing full speed to technological independence from the US, I guess it's fine but if they collapse like an opium addict given a new fix, I'm gonna puke.

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What this deal will do is lessen the pain to ZTE, but no Chinese tech (or other, but tech companies are most exposed to US embargo’s for a lack of readily available alternatives) company is going to feel safe with US companies supplying key components.

Irrespective of whether this deal goes through, there is going to be a sea change in terms of Chinese tech companies’ attitude towards US suppliers. With market forces not pre-disposed to creating alternative sources of high tech components, they would have little choice but to do it in house.