ZTE's fiber-optic networks depend on USA components and its cheap smartphones sold en masse overseas are powered by United States chips and the Android operating system.
Last month, the Commerce Department barred American firms from exporting parts to the Chinese smartphone company for seven years, saying that ZTE had violated a previous settlement of criminal and civil charges for making illegal shipments to North Korea and Iran.
ZTE had been working to get the denial order overturned, and had pegged its hopes on broader bilateral trade talks between the United States and China.
Last month, the Trump administration blocked American firms from selling parts or providing services to ZTE until 2025.
Trump's statement on Sunday also comes days after USA and Chinese officials held high level trade talks, during which Beijing specifically brought up the restrictions on ZTE.
ZTE's current struggles have made it the most visible effect thus far of a brewing trade war between the United States and China.
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"They don't want to be held hostage" to USA tech firms.
The possible trade war is also said to disrupt investment in technology.
The company recently said that it would cease "major operating activities" because of the USA government's recent trade restrictions. "This is a place where China's model of capital works better". He said the "Commerce Department has been instructed to get it done!" because "too many jobs in China lost".
The company incited a seven-year moratorium on purchases from USA suppliers for violating a 2017 sanctions settlement and then lying about it. "If you control the updater and the infrastructure you have an vast advantage". U.S. government employees may not use Huawei devices. The US concerns over Huawei were said to be related to theft and misuse of users' personal data, with a subtext of espionage.
National security advisor "John Bolton threatened sanctions on North Atlantic Treaty Organisation allies who continue to trade w Iran".
The announcement was met with some criticism based on the concerns about cybersecurity and an underlying mistrust of the Chinese government, which Trump responded to in another tweet less than five hours later.