>> In a major reversal of policy, US President Donald Trump on Sunday pledged to help Chinese telecom giant, ZTE get back into business fast, a concession to Beijing, ahead of high stakes trade talks that will take place this week. Trump tweeting, he's working with Chinese President Xi Jinping, explaining that too many Chinese jobs have been lost and that the Commerce Department has been instructed to get it done.
The decision marks a dramatic shift in tone for Trump, who has long accused China of stealing US jobs. And comes just a month after the Commerce Department slapped a seven-year ban on American supplies to ZTE, causing it to suspend its main operations. The ban was punishment after ZTE, the fourth-largest smartphone brand, admitted to violating US sanctions by illegally shipping American goods and technology to Iran, first uncovered by a Reuters report in 2012.
Representative Adam Schiff, Ranking Democrat on the House Intelligence Committee, quick to pounce on Trump's about face, tweeting, our intelligence agencies have warned that ZTE technology and phones pose a major cyber security threat. You should care more about our national security than Chinese jobs. Trump's olive branch to ZTE comes just days ahead of a meeting between Chinese and US officials to resolve an escalating trade dispute between the world's two largest economies.
The move could have a significant impact on shares of American companies that supply to ZTE, such as Acacia and Oclaro, which saw their stock prices fall after the ban was announced. US companies Qualcomm and Intel also supply parts to ZTE. Hours later, Trump followed his ZTE tweet with another on trade talks with China, assuring, quote, be cool.