Now, Trump says he's working with President Xi Jinping of China to get the company back on its feet.
The United States and China will be able to reach an agreement in the sphere of trade that would benefit both countries, said the President of the United States Donald trump.
Those actions led to a US$1.2 billion fine past year, with the current export ban imposed in April after ZTE allegedly failed to live up to its agreement, lying about the punishment of employees involved in the sanctions skirting.
As one of the world's largest telecom equipment makers, ZTE relied on USA companies such as Qualcomm Inc and Intel Corp for components. In a later tweet, Trump suggested the USA and China were moving forward on the trade negotiations but it was not clear how the ZTE case would fit into the bigger picture.
Trump's offer for aid comes at a moment of sky-high trade tensions between the United States and China. ZTE and it's subsidiaries are banned from obtaining USA technology for seven years, putting the company's ability to license Android for their smartphone business and technologies and patents for their infrastructure business. "This egregious behavior can not be ignored, " Commerce Secretary Wilbur Ross said in April. It's surprising to see this action confirmed by the President, and such concern over Chinese jobs given that the US Department of Commerce is ostensibly protecting US interests in enforcing its technology export sanctions. "China may now have strengthened its desire to get out from a under a scenario where the United States can do that again".
Other experts said Trump's policy reversal was unprecedented. The punishment resulted in ZTE suspending all major operations, according to a May 10 statement.
"We're deeply concerned about the risks of allowing a company or entity that is beholden to foreign governments that don't share our values to gain positions of power inside our telecommunications networks."Oclaro, which earned 18 percent of its fiscal 2017 revenue from ZTE, fell 17 percent.