China-US Trade Talks: Mixed messages on US tariff strategy

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02:38

The U.S. Commerce Secretary says he's looking for other ways to punish Chinese telecom company, ZTE, for breaching a settlement over U.S. sanctions. This comes just as Beijing's top trade negotiator heads to Washington this week for more talks. CGTN's White House Correspondent Jessica Stone has the details.

Mixed messages from Washington. Ahead of this week's trade talks with Beijing, US Commerce Secretary Wilbur Ross said the U.S. can afford a trade war.

WILBUR ROSS US COMMERCE SECRETARY "A trade tit-for-tat will not be economically life threatening for the United States."

But just hours before, the American president Donald Trump expressed concern for Chinese jobs after Washington blocked ZTE from its U.S. suppliers. Trump ordered his Commerce Department to give Chinese telecommunications giant, ZTE, quote: "a way to get back into business, fast."

Last week, ZTE said it was stopping major operations, endangering as many as 80-thousand Chinese jobs, because it can't buy components from U.S. suppliers.

American companies provide an estimated 25-30 percent of ZTE components in cell phones and telecommunications networks, so Washington's move risks thousands of American jobs, too.

Now, Beijing and Washington are working on a deal.

LU KANG CHINESE FOREIGN MINISTRY "We appreciate the positive statements made by the U.S. side on the issue of ZTE. We are currently working with the U.S. side on specific details."

RAJ SHAH WHITE HOUSE SPOKESMAN "Obviously, this is part of a very complex relationship between the United States and China. It involves economic issues, national security issues and the like. It's an issue of high concern for China that's been raised with the U.S. government and our administration at various levels."

A possible option on the table-Beijing reduces proposed tariffs on U.S. farm goods like pork and soybeans in exchange for a lighter penalty on ZTE. Secretary Ross wouldn't comment on that specifically, but did confirm he's already looking at reducing the ban on ZTE.

WILBUR ROSS US COMMERCE SECRETARY "The question is are there alternative remedies to the one that we had originally put forward. And these are the areas we will be exploring very, very promptly."

JESSICA STONE WASHINGTON "It's worth pointing out that a visit by Beijing's top trade negotiator Liu He wasn't confirmed until President Trump ordered a lighter penalty on ZTE. Trump says he hopes his personal relationship with Chinese President Xi Jinping will result in a quote: 'larger trade deal' with China that works for everyone. Jessica Stone, CGTN Washington."