China's ZTE penalties become a bargaining chip in potential Trump trade deal

The White House and senior Chinese officials are discussing a targeted economic deal that would relax severe penalties on ZTE, a major Chinese telecom company, in exchange for unspecified demands from President Donald Trump, two people briefed on the discussions said Sunday.

Source: AAP

The talks are fluid, and Trump has shown a willingness to veer between extremes in how he interacts with Beijing. But Trump said Sunday on Twitter that he wanted federal regulators to take the unusual step of relaxing penalties on ZTE, even though the Chinese company has been accused of illicitly shipping goods to North Korea and Iran.

Chris Lu reports.