President Donald Trump tweeted Wednesday that the reversal on trade policy around ZTE Corp. does not indicate a slackened position on China trade negotiations.
Here’s what Trump said in a series of tweets:
“The Washington Post and CNN have typically written false stories about our trade negotiations with China. Nothing has happened with ZTE except as it pertains to the larger trade deal. Our country has been losing hundreds of billions of dollars a year with China…We have not seen China’s demands yet, which should be few in that previous U.S. Administrations have done so poorly in negotiating. China has seen our demands. There has been no folding as the media would love people to believe, the meetings…haven’t even started yet! The U.S. has very little to give, because it has given so much over the years. China has much to give!”
Why It’s Important
The president’s support of trade with ZTE had driven a spike in optical stocks exposed to the Chinese business. Some shares traded lower Wednesday on the clarified policy.
Acacia Communications, Inc. (NASDAQ: ACIA) fell 4.3 percent and Oclaro Inc (NASDAQ: OCLR) 1.1 percent, while Applied Optoelectronics Inc(NASDAQ: AAOI) and Lumentum Holdings Inc(NASDAQ: LITE) dipped marginally.
Chinese Vice Premier Liu He arrived in Washington Tuesday for a five-day visit packed with trade talks. Reuters reported that several U.S. lawmakers U.S. lawmakers rejected any planby Trump to ease restrictions on ZTE Corp., calling the company a security threat and vowing not to abandon legislation clamping down on the company.