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The United States is seeking to make a trade deal with China, White House economic adviser Larry Kudlow said on Tuesday as bilateral talks between the world's two economic powerhouses resume in Washington this week.

The comment took USA trade and security officials by surprise and prompted the president to say in a later tweet that ZTE buys a large amount of parts from US companies and the concession was part of "a larger trade deal with China and my personal relationship with President Xi". "Everyone is looking for some kind of deal", he told Politico in an interview, adding that no agreement had been reached yet. "We're still very far apart", U.S. Ambassador to China Terry Branstad said, according to Reuters. "Free and open trade, I think that's the solution".

The negotiations would also ease roadblocks in China faced by a USA semiconductor company Qualcomm Inc., whose proposed acquisition of NXP Semiconductors NV of the Netherlands has been held up by Beijing.

The case dates to before Trump took office in January 2007 but the Commerce Department's decision came amid worsening trade tensions between the US and China centered on technology-related intellectual property.

The spat started with United States measures against Chinese steel and aluminium imports, which led to Beijing imposing tariffs on 128 different U.S. products.

"You (Trump) should care more about our national security than Chinese jobs".

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The country's central news agency said it would blow up all the tunnels on the nuclear test ground. The test tunnels would be blown up, blocking their entries, the statement said.

ZTE reached a settlement in March 2017 for violating US export laws and paid penalties totaling $1.19 billion. The U.S. accused ZTE of misleading American regulators after it settled charges of violating sanctions against North Korea and Iran.

Ministry spokesman Lu Kang also said China appreciated tweets by Trump saying he would help ZTE Corp. get "back into business" because too many jobs in China are at stake after the USA government cut off access to ZTE's American suppliers.

The U.S. flag is seen in the wine section of a supermarket in Beijing, China, April 5, 2018.

Washington and Beijing have proposed tens of billions of dollars in tariffs in recent weeks, fanning worries of a full-blown trade war that could hurt global supply chains and dent business investment plans. "The more we can work things out, the better it's going to be not just for USA and China, but for the entire world economy", he said.

"The Company and related parties are actively communicating with the relevant USA government departments in order to facilitate the modification or reversal of the Denial Order by the USA government and forge a positive outcome in the development of the matters", said ZTE.


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