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China First! Trump Yanks Eases ZTE Penalty to Save 70,000 Jobs in China

In March 2017, the U.S. fined Chinese smartphone company ZTE $1.2 billion for illegal sales to Iran and North Korea. Said Commerce Secretary Wilbur Ross at the time, “We are putting the world on notice: the games are over…. Those who flout our economic sanctions and export control laws will not go unpunished — they will suffer the harshest of consequences.”

Commerce Secretary Wilbur Ross says he will explore other ways to punish a Chinese cellphone manufacturer, after a surprising tweet from President Trump that said the original penalty was too harsh.

Trump tweeted on Sunday that smartphone giant ZTE was losing “too many jobs in China” as a result of U.S. sanctions. He said he was working with Chinese President Xi Jinping to find a solution.

Well, not the harshest. ZTE lied to us about the punishments they promised to mete out on their employees who violated our sanctions on Iran and North Korea, and we were going to whack ’em with an export ban, but then Wilbur Ross’s boss shouted, China First!

“Commerce Department has been instructed to get it done,” Trump tweeted.

ZTE had originally been fined for illegal sales to Iran and North Korea, and the company agreed to take corrective action. When U.S. regulators found the company had not complied with that settlement, they went further and blocked U.S. suppliers from selling parts to ZTE. That was described as a “death sentence” for the company, which employs some 70,000 people [Scott Horsely, “President Trump Puts ‘America First’ on Hold to Save Chinese Jobs,” NPR: The Two-Way, 2018.05.14].

70,000 jobs? American newspaper publishers have lost more than four times that many jobs over the past decade, and those are Americans helping protect and promote the First Amendment, not to mention GDP. Plus, the FBI and the Pentagon have warned that ZTE gear threatens national cybersecurity:

The head of the FBI and other intelligence chiefs in congressional testimony this year urged American citizens to steer clear of products from ZTE and its Chinese rival Huawei. And just two weeks ago, the Pentagon banned the companies’ phones from being sold on military bases, saying they “may pose an unacceptable risk to Department’s personnel, information and mission” [Derek Hawkins, “The Cybersecurity 202: Trump’s ZTE Reversal Flouts Warnings from Top National Security Officials,” Washington Post, 2018.05.14].

Senator M. Michael Rounds, you’re supposed to be our go-to guy on cybersecurity; would you care to weigh in?

I look forward to the Trump-bots trying to explain to us how backing off punishment of a Chinese company for violating sanctions against Iran and North Korea just to save Chinese jobs serves American security or economic interests.

25 Comments

  1. Roger Cornelius 2018-05-14 19:51

    Last week Trump was in Elkhart, Indiana, Pence’s home state, heralding the success of his economic policies and tax cuts.
    The same day Harley Davidson announced they were moving their manufacturing operations to Thailand.
    Why Trump didn’t intervene in the Harley Davidson move to save American jobs should be of concern, given that he wants to save China jobs, but not jobs at home.

  2. Roger Cornelius 2018-05-14 23:46

    Trump always has a scam.
    Three days ago China agreed to invest $500 Million into the development of a Trump branded resort property in Indonesia.
    The payoff for China is Trump saving ZTE.
    America First.

  3. jerry 2018-05-15 01:38

    Indeed Roger, trumpstein always has a way scam way to make things happen. He is the Rothschild of politics and finance and now, with an inside track on events that make his and his associates pockets bulge.

  4. Darin Larson 2018-05-15 07:25

    Roger, you mean Trump First! Make Trump’s Bank Accounts Big Again.

  5. Porter Lansing 2018-05-15 09:09

    President Trump has a plan. If he can continue to break laws, such as this blatant violation of the emoluments clause of the Constitution, then Robert Mueller’s criminal probe will never end and President Trump can’t be charged. Brilliant …

  6. David Newquist 2018-05-15 10:30

    It is important to note that Trump reversed the sanctions against ZTE 72 hours after China committed to providing a half billion dollars to an Indonesian project. From Talking Points Memo: “The overall project has two backers: MNC corporation of Indonesia (huge diversified mega corp) and the Trump Organization.”

  7. mike fom iowa 2018-05-15 11:25

    Doc, I believe there is another half billion being dangled by China for the same project. I meant to post this earlier, but there is another article that explains the extra half bil.

    What are the odds that no one in wingnut land will admit this has all kinds of conflicts of interests?

    HRC could never get away with being mentioned in this same article without being accused of corruption.

  8. o 2018-05-15 11:34

    Now, not even an attempt to cover up the quid pro quo for Trump business – a business he has not divested himself (as promised) from since election.

    BUT, the most horrifying story out of Washington is the rush to seat young, conservative judges on benches kept open for years under the Obama administration by the Senate GOP. The hijacking of the Supreme Court is not even the tip of the judicial takeover iceberg.

  9. jerry 2018-05-15 15:23

    North Korea has just handed trump a no go slip. How much this will fiasco will cost US taxpayers is still up for grabs. I’m betting we blink and cancel the military exercise. South Korea and Japan now are getting the clear picture…and so is China. Amazing what a half billion will buy you these days.

    “WASHINGTON — North Korea is threatening to cancel President Trump’s upcoming nuclear summit with Kim Jong Un because of joint U.S.-South Korean military exercises.

    North Korea’s Central News Agency also announced it had already canceled high-level talks with South Korean counterparts because of the drills it considers a prelude to invasion of the North.”

    Kim’s new favorite song is this:

    Well, I thought the day I met you, you were meek as a lamb;
    Just the kind to fit my dreams and plans.
    But now, the pace we’re livin’ takes the wind from my sails
    And it looks like I’ve Got A Tiger By The Tail.

    I’ve Got A Tiger By The Tail, it’s plain to see;
    I won’t be much when you get thru’ with me.
    Well, I’m a losing weight and a turnin’ mighty pale.
    Looks like I’ve Got A Tiger By The Tail.

    Well, ev’ry night you drag me where the bright lights are found;
    There ain’t no way to slow you down
    I’m as ’bout as helpless as a leaf in a gale;
    And it looks like I’ve Got A Tiger By The Tail.

    Read more: Buck Owens – I’ve Got A Tiger By The Tail Lyrics

    trump should get the a prize for this sham, a booby prize. America got chumped again, but not trump and Comrades, they are getting their real prize, our money.

  10. Debbo 2018-05-15 15:54

    This is extremely worrying. Blatant criminal acts. C’mon Mueller. Let’s get this going soon!

  11. jerry 2018-05-15 16:04

    Jackley/NOem/Krebs and Opie and of course Tapioca Neal, are all in on these criminal acts. They even have a name for it “The Red Wave” You would kind of get the idea that South Dakota citizens would demand better, and we need too. Vote Billie Sutton and Tim Bjorkman as the kind of leaders to make South Dakota Great Again.

  12. jerry 2018-05-16 02:16

    Make North Korea Great Again/The Red Wave according to Jackley. North Korea will soon be demanding that Mike Rounds/John Thune/Neal Tapioca cage wrestle with trump covered with olive oil…just to see who is the slickest. Here is the North Korean latest carrot dangling.

    “North Korea warned it could cancel the summit meeting with President Trump if Washington insisted on “unilateral nuclear abandonment”
    Tuesday, May 15, 2018 11:38 PM EST

    North Korea threw President Trump’s planned summit meeting with its leader, Kim Jong-un, into doubt on Wednesday, threatening to call off the landmark encounter if the United States insisted on “unilateral nuclear abandonment.”

    The statement, made by the North’s disarmament negotiator, came hours after state media warned that the summit meeting might be canceled to protest a joint military exercise between the United States and South Korea that began this week.”

    If anyone thought that North Korea would come to a meeting in a weak position, they are getting their eyes opened. Turns out North Korea is just as good of a negotiator as China. Get ready for a few hundred billion of taxpayer dollars to be squandered in the coming weeks so our dear leader can shake hands with the North Korean dear leader on a Nuke super fund to cover up their screw up. Sad…and predictable

  13. jerry 2018-05-16 13:57

    The EU has been working with Iran to keep the deal they all signed, in place. I wish we still had negotiators that could make agreements instead of the Russian trash we have now in the white house doing it. https://www.aljazeera.com/news/2018/05/eu-launches-point-economic-plan-rescue-iran-nuclear-deal-180516080329753.html

    The way things are right now, the guy that is laughing all the way to the bank is our shadow leader, Vladimir Putin. Vlad not only has happy feet about the pullout in Iran, he is beside himself with the North Korea slap in the mug they just gave trumpstein. trumpstein is doing okay though, he got another half billion for his project to add to the rest of the loot they have stolen.

  14. OldSarg 2018-05-16 21:55

    Gee, all you financial geniuses know so much more. I’m so impressed.

  15. Debbie 2018-05-17 00:03

    Why is everyone so caught up in theatrics , rather than dealing with the fact that the theatrics are to replace real policy-

    ZTE is just theatrics and nothing more- Theresa May got busted with the same theatrics when she bottomed out in the polls and drudged up the American Russian coldwar and had to eat crow-
    While you are playing in Trumps reality show , both the Dems and the Republicans managed to pull the rug on medications this month for medicaid/ medicare recipients.
    Congrats for ignoring the important and paying homage to more theatrics.

  16. jerry 2018-05-17 01:58

    ZTE is more than theatrics, it is corruption, blatant corruption. Here is what Rex Tillerson said to the graduates at Virginia Military Institute “”If our leaders seek to conceal the truth, or we as people become accepting of alternative realities that are no longer grounded in facts, then we as American citizens are on a pathway to relinquishing our freedom.” Bah Zing! Rex Tillerson smoked him some trumpstein.

    Then Rex Tillerson went on: “”A responsibility of every American citizen to each other is to preserve and protect our freedom by recognizing what truth is and is not, what a fact is and is not and begin by holding ourselves accountable to truthfulness and demand our pursuit of America’s future be fact-based — not based on wishful thinking, not hoped-for outcomes made in shallow promises, but with a clear-eyed view of the facts as they are, and guided by the truth that will set us free to seek solutions to our most daunting challenges.” Double Bah Zing! from the guy who called trumpstein a _________moron at the Pentagon.

    Theatrics of Watergate bought down Nixon, theatrics by Daniel Ellsberg and the Pentagon Papers, helped to bring about the end of the Vietnam War. The list goes on. The Russian takeover of the United States will not be as smooth as NOem/Rounds/Thune/Jackley and the rest of the Red Wave think it will be. We will not be defeated by their conservative communism. In other words, a red is a red and these folks fit the mold.

  17. Cory Allen Heidelberger Post author | 2018-05-18 05:36

    Debbie, I’m not sorry that we don’t pay attention strictly to the stories that you prioritize. Your determination of what matters and what doesn’t is wholly subjective and really seems just an excuse for you to barge in, dismiss everyone else’s opinion, and profess your own superior understanding of policy. In that regard, your approach to commentary is somewhat like Jason’s and OldSarg’s: not finding your preferred topic discussed, you throw it in anyway, hoping to derail the conversation.

  18. Debbie 2018-05-18 06:08

    Jerry
    Theatrics is the art of the distraction like you dragging in communism, Watergate and the Pentagon papers when they have no relevance ZTE . Watergate and Pentagon Papers were not Theatrics to distract you from one thing to another . Pentagon Papers was real whistle blowing and Watergate was committed not as a distraction but at an attempt to illegally win an election.
    ZTE is nothing more than more political theatrics because it was dealt with before Trump took office , well except for dismissing the CEO. Trump is in political trouble again/still. Trump really doesn’t give a rats hinny if ZTE dismissed it’s CEO but that is what he claims the entire 7 year sanction is about.Trump can’t deliver what he promised Republicans are losing their safe places. Trump can’t bring back coal, he can’t prevent US companies leaving the US for cheaper labor, he can’t stop automation, so he has to do something else, he has to make it appear that he is doing something. Attacking ZTE is theatrics to make it look like he is doing something, also ZTE is another one of those Obama stabs. But shutting down ZTE for 7 years also shuts down production for US manufacturers who provide the parts, which provides US jobs Just an idiot like Theresa May who can’t think past the first impulsive behavior that pops in her brain when things go south.

    Seriously you really think Russia is the problem- Russia hasn’t got the military or the money to even be a threat to the US. Russia is like the little teacup poodle that wants to annoy you by barking, and sometimes trying to bite because it hasn’t got the size or power of a rottweiler to frighten you.
    Yeah the NYT version of Communism is quite the ogre tale but apparently you seem to have the low down so tell me exactly how it is that Russia and China can beat US growth for 100 years , beat us into space with their technology , have some failures and have us back on their doorstep buying their technology ?
    How did China stay out of the Global crisis in 2008 ? How is it possible that we are borrowing from both Russia and China ? How is it China is paying for an entire new highway trade route and we can’t fix an existing bridge ?
    Inquiring minds want to know

  19. jerry 2018-05-18 10:49

    Thanks for the segue Debbie, appreciate that: Code Name Crossfire
    New York Times
    “By Matt Apuzzo, Adam Goldman and Nicholas Fandos

    May 16, 2018
    WASHINGTON — Within hours of opening an investigation into the Trump campaign’s ties to Russia in the summer of 2016, the F.B.I. dispatched a pair of agents to London on a mission so secretive that all but a handful of officials were kept in the dark.

    Their assignment, which has not been previously reported, was to meet the Australian ambassador, who had evidence that one of Donald J. Trump’s advisers knew in advance about Russian election meddling. After tense deliberations between Washington and Canberra, top Australian officials broke with diplomatic protocol and allowed the ambassador, Alexander Downer, to sit for an F.B.I. interview to describe his meeting with the campaign adviser, George Papadopoulos.”https://www.nytimes.com/2018/05/16/us/politics/crossfire-hurricane-trump-russia-fbi-mueller-investigation.html

    In the trump campaign, the meetings, the corruption, the payoffs and more importantly, the treason was Carter Page. Big as life for us all to see. Now Debbie, you can be as upset about my information as you can be, but the facts are this, with the Russian takeover of our government completely, we cannot get Medicaid or anything else that costs money because it drains money from the crooks and liars.

    Regarding military, Vietnam did not have anything that could resemble an opposing military compared to the United States and its allies, South Korea and Australia and yet they beat us with Ak47’s and IED’s from our own artillery shells and our own bombs. 50,000 dead Americans paid the ultimate price for another unnecessary war. American citizens pee their pants when we even speak of one Muslim or see two Native Americans together. We want to build a wall on our southern border to keep out an imaginary foe, while we take advantage of that foe’s illegal status to work for peanuts.

    Speaking of space, whose rockets are we flying in to the space station? When was the last rocket that went up that was for space exploration? Here is a clue for you, we fly Russian for our astronauts and if you want anything else shot up there in the blue yonder, you contact Elon Musk under private contract.

    Answers to your questions that your inquired mind wants to know. Republicans put the Iraq war on your credit card without any hope of funding that fiasco, our Russian president claims we are at 7 trillion now and counting. We are not borrowing from Russia, they are simply bribing our representatives to make mistakes that raise the price of international oil that benefits the Russians. China is buying our treasury bonds in a form of lending that pays them interest and gives them clout. With the same kind of trade route thinking that predates Marco Polo, China can build in Africa because they are investing in that trade route, we are not interested in trade relationships with Africa unless it involves corruption and oil. The reason we cannot fix an existing bridge is because Americans think that the government is something foreign, we think that someone else is the government. We are not smart enough to understand that we are the government.

  20. Roger Cornelius 2018-05-18 11:21

    ZTE is not theatrics, the senate believes that laws were broken with the $500 Million Chinese investment into Trump’s properties in Indonesia.
    Trump is under investigation and there are pending court cases that provide evidence that he violated the Emoluments Clause of the Constitution not just with Chinese, but with other shady business deals.
    Trump defied his own Dept. of Defense by coming to the aid of ZTE who just recently that ZTE was a threat to our cybersecurity.

  21. jerry 2018-05-18 12:46

    Debbie, As if by theatrical magic, we now see this from Bloomberg:

    “A branch of China Construction Bank Corp. invited high-net-worth clients willing to pay the ticket price to a May 31 dinner in Dallas, according to an invitation seen by Bloomberg News and confirmed with bank staff. Chinese participants would have the opportunity to communicate with U.S. “tycoons,” take photos with Trump and get his autograph, according to the invitation.

    While Trump was expected to host a $50,000-a-head fund-raising dinner with the Republican National Committee in Dallas that night, it’s illegal for U.S. political campaigns to accept donations from foreign nationals or from corporations. That means only the Chinese bank’s customers with U.S. passports would be eligible to attend.” https://www.bloomberg.com/news/articles/2018-05-18/china-bank-s-150-000-trump-invite-draws-complaint-from-campaign

    Thankfully for the Red Wave republicans, trump decided that ZTE was only going to be a money maker for him by kicking American jobs to the curb and saving jobs in China. What a guy, and what a party to get all Americany thinking about. Since Giggling Mike Rounds and the Red Wave Jackley got by with the open theft corruption of millions of Chinese passport dollars and the very strange and secret death of Benda, bada bing bada boom, republicans don’t even blink or hesitate to steal from a feller.

  22. Roger Cornelius 2018-05-18 13:11

    Theatrics. An interesting word choice given the fact that Trump thrives on theatrics and drama.

  23. Cory Allen Heidelberger Post author | 2018-05-18 13:30

    Excellent turn of the word, Roger. This administration is all theatrics and sleight of hand intended to hide its self-serving abuse of power. We serve our country by pointing out and trying to end this corruption.

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