Negotiators from the USA and China are scheduled to meet in Washington on Monday, where, after months of trade tensions, Beijing is said to be open to purchasing a wider array of US goods and services.
An even higher-stakes fight looms over American allegations that China steals technology and forces USA companies to hand over trade secrets in exchange for access to the Chinese market.
ZTE reached a settlement in March 2017 for violating US export laws and paid penalties totaling $1.19 billion.
China is likely to offer increasing its purchase of aircraft, autos, natural gas and some agricultural commodities, Dan Ikenson, director of the Cato Institute's Herbert A. Stiefel Center for Trade Policy Studies, told FOX Business.
The White House said the deficit has triggered the loss of millions of U.S.jobs that are consequently added to the Chinese economy.
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 US government cut off access to ZTE's American suppliers. "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 Chinese Commerce Ministry said State Council Vice Premier, Liu He, would arrive in the USA on Tuesday for trade negotiations.More news: 40 percent of moms fake their reaction to their Mother's Day gift
The move was announced in a tweet by Trump on Sunday and comes amid pressure from China's government to back off the sanctions on ZTE, a major Chinese government-linked telecommunications giant.
Kudlow also said that the United States and China should both take down trade barriers as part of any agreement. By cutting off access to USA suppliers of essential components such as microchips, the ban threatens ZTE's existence, the company has said.
The U.S. flag is seen in the wine section of a supermarket in Beijing, China, April 5, 2018.
ZTE should not be operating in the United States and should not have easy access to American technology, Rubio said. Both sides had been expected to dig in for a fight over their trade imbalance at this week's talks.
Trump is seeking to cut the chronic US trade deficit by $100 billion and gain concessions over the policies that foreign companies say force them to share technology in order to gain market access.
California Rep. Adam Schiff, the top Democrat on the intelligence committee, criticized Trump for softening his stance on ZTE.