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The companies are controlled by the Communist Party of China and could be used for operations to compromise US communications infrastructures, the report said.

China's government has pressed the Trump administration in recent trade talks to lift the sanctions and the president voiced sympathy for ZTE in a tweet Sunday. The U.S. forbid American companies from selling products to the company for seven years, resulting in the company announcing last week it would have to shut down major operations.

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.

When a US delegation led by Treasury Secretary Steve Mnuchin met with officials in Beijing last week, no deal was reached largely because China refused a demand to cut the trade deficit by $200 billion within the next two years.

The foreign ministry said Vice Premier Liu He will visit the U.S. from Tuesday to Saturday for consultations with U.S. Treasury Secretary Steve Mnuchin.

On Monday, Commerce Secretary Wilbur Ross told reporters that the United States would consider alternatives to a supplier ban. China, for its part, has stated that it is willing to buy more American goods and services to help reduce the trade deficit.

U.S. Commerce Secretary Wilbur Ross leaves his hotel in Beijing, Friday, May 4, 2018.

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WASHINGTON (AP) — In a surprising overture to China, President Donald Trump said Sunday he would help a Chinese telecommunications company get "back into business", saying too many jobs in China are at stake after the USA government cut off access to its American suppliers.

"The United States and China are the two biggest economies in the world". USA companies that export to China have seen their goods held up at China's ports amid tougher inspections.

When US President Donald Trump talks about saving jobs, it is usually American jobs he is making promises about.

ZTE is known to rely on importing chips from U.S. firms such as Qualcomm and Intel for up to a third of its components. "But be cool, it will all work out!" "Stay tuned!" Trump tweeted on Tuesday. "So they can't say they don't know what we're asking for", he said.

The U.S. imposed the penalty on Shenzhen-based ZTE after discovering that the company, which had paid a $1.2 billion fine in the case, had failed to discipline employees involved and paid them bonuses instead.

"Our intelligence agencies have warned that ZTE technology and phones pose a major cyber security threat".