The Costa Atlantica first arrived in Nagasaki in January to undergo repairs, with several hundred crew on board.
The Commerce Department said the ZTE action is a law enforcement matter unrelated to broader discussions of trade policy.
The DPRK made a counterproposal early Saturday, offering to talk first about the art troupe's dispatch.
The European Union declared itself ready on Monday to start formal talks to do just that.
The Dow Jones Industrial Average dropped 973.65 points, or 4.4 percent, to 20943.51, marking its worst first day of a quarter.
The Committee on Foreign Investment in the US has the power to veto foreign investments if it concludes that national security is being threatened.
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The DPRK proposed to ROK holding a working-level dialogue on Jan 15 in Tongilgak, a building controlled by the DPRK in the truce village of Panmunjom, to discuss the dispatch of its art troupe to the ROK-hosted Winter Olympics.
The DPP, Li said, "refused to recognize that the two sides of the Taiwan Straits belong to one China. By so doing, it undermined the political basis of cross-Straits relations and brought the cross-Straits contact and communication mechanism to a standstill".
The Department of Health is conducting a quarantine inspection on the ship and collecting health declarations from everyone on board.
The DPP's heavy defeat in the elections should awaken the Tsai administration from its illusions.