This all made the U.S. force China to reconsider the taxes imposed on imports and reduce it quickly and avoid all practices that transfer the intellectual properties to the Chinese companies.
Despite announcing a truce in the trade hostilities less than 10 days ago, after Treasury Secretary Steven Mnuchin said threatened tariffs on Chinese goods were "on hold", the White House signaled it was ready to pull the trigger on a broad array of penalties.
Mr. Trump has often talked about challenging what he has described as China's unfair trade practices, but his advisers are deeply divided over the best course for doing so. The U.S. Congress has demanded that President Donald Trump do more to pressure ZTE, potentially giving China a small window to negotiate with the administration before Congress steps in.
Mr Ross is set to arrive in Beijing on Saturday where he is expected to try to get China to agree to firm numbers to buy more United States goods, but the latest aggressive move from Washington could cast doubt over whether negotiations can progress to the next level. In recent days, the ZTE case has become even more central to the trade conflict, as the company reportedly removed two senior executives from their posts as concessions for the USA, and President Xi Jinping has continued his calls for technological self-reliance.
"When the leadership of the trade agenda is oscillating between Mnuchin and Lighthizer, it doesn't motivate anyone - particularly the Chinese - to start making major concessions", Altbach said.
Trump said earlier that a resolution would help USA firms that supply ZTE with components, but members of Congress, including several Republicans, warned that the U.S.is being too lenient on a company that has violated US sanctions.
Economists say the changes also can help generate jobs in China by allowing consumers to buy higher-quality goods locally instead of when they travel overseas.
Mexico strikes back after U.S. announces tariffs on steel, aluminum
Ross downplayed the threat of a trade war, calling the changes mere "blips on the radar" in an interview with broadcaster CNBC . Trudeau is hosting this year's G-7 summit in early June and President Trump is expected to attend.
"Last week, the President revealed the utter hollowness of his promises by pledging the American government resources to a Chinese company that has violated U.S. sanctions by selling technology to North Korea and Iran, and that is a known cyber security risk to the United States", she said.
The meeting held in Washington in May where many matters were discussed on Chinese matters.
Alongside this, it said it will continue to pursue litigation at the World Trade Organisation against China's "discriminatory technology licensing requirements".
Tuesday's announcement comes amid mixed messages from the White House about a "trade war" with China.
CGTN's Jessica Stone spoke with Marc Ross on the latest trade actions between U.S. and China.
Communist Party's official People's Daily has issued a statement which says, "The Chinese government will have the necessary measures in place to deal with a USA withdrawal from any settled agreement".
China commerce's ministry reacted harshly, saying it was surprised and saw it as contrary to the consensus both sides reached recently. This investigation was done on China regarding the intellectual property practices in China.
The tariff threat is a "very powerful" negotiating tactic, said Lester Ross, chairman of the American chamber's policy committee.