It seems that the US ban on ZTE is a posing a major threat to the US-China trade deal. The ban has placed a block on US firms selling to ZTE – the Chinese Telecoms company. There have been discussions related to the US lifting this ban in return for China canceling or reducing tariffs on US agricultural products. However, there seems to have been little progress made.
US Ban on ZTE: ZTE Breaching Sanctions Against North Korea and Iran
The ZTE ban was very damaging to the firm, but it was applied because ZTE was selling American products to North Korea and Iran in breach of the sanctions applied to both countries. The US seems to be in the right here, although it may be time to consider trade relationships between the two countries rather than stress the disagreement. President Trump has promised Chinese President Xi Jinping that he would look at the ZTE situation.
Genetic Modification an Issue to China and UK
Genetic modification is an issue in many countries, including China and the UK. The form of genetic modification permitted in the US is not well received in China, the UK and many other EU countries. However, this is an issue with a defined and understandable reason. It should not be ignored but should be the subject of further discussion rather than an outright ban being applied by the importing countries.
Other Issues: Cars, Fruit, and Logs
That’s not the whole of it, however: several other cargoes from the US have been delayed at customs. Among these are Ford cars and other vehicles, US pork, logs and even American apples. The delays have been explained as increased inspections of US products coming into Chinese ports.
President Trump has stated that he doubts the trade talks with China will succeed. He has stated that China has been “very spoiled” by getting whatever they wanted from the US. He made the same “very spoiled” statement about the EU and ‘other countries’ (his words). The export market between the US and China is fragile at the best of times. However, it now seems to be on the verge of collapse – unless more diplomatic heads start talking. Starting with the US ban on ZTE and the China-US trade deal.