Senators Introduce Measure to Reverse Trump Administration's ZTE Deal
10 Junio, 2018, 00:42 | Author: Arnold Perez
The June 7 settlement is seen as creating a positive environment for also negotiating an end to the current China-US trade war, but Ross said the enforcement action against ZTE is "quite separate and apart" from the trade issue.
Ross called ZTE's actions a "world-class embarrassment", and said that the USA deal with ZTE imposes the "most strict" compliance ever on any company.
The agreement includes a $1 billion penalty for ZTE and another $400 million in trust to cover future possible violations.
Commerce Secretary Wilbur Rosstold CNBC this morning that the USA has struck a deal to lift sanctions on the electronics giant. Chinese telecom firms like ZTE and Huawei are suspected of having ties to the Chinese military, and their products already are banned on many USA military bases. The Trump administration had previously announced that it was banning US companies from selling ZTE components for seven years, components critical to its entire product line.
And last week, the Daily Beast reported that a day after the president said he wanted to help ZTE, the tech company hired the Mercury Public Affairs firm to lobby on its behalf in Washington. Further, the sources added that the Commerce Department plans to amend its 2017 settlement agreement and count the $361 million ZTE paid as a part of that. At the same time, it continued to ask the USA government to lift the ban. That ban's removal is said to have saved the Chinese government-owned ZTE from collapse.
"If the U.S. is truly going to make an example out of ZTE, the name itself is now toxic and can not be used going forward", Earl Lum, the President of EJL Wireless Research, a consultancy and research firm based in the USA, said when the ban came into force.
In addition to the additional fines, ZTE will also replace their entire board of directors and senior leadership, as well as retain a special compliance team answerable to BIS for 10 years.
The Commerce Department denial order prevented ZTE from utilizing key technology from U.S. suppliers like Qualcomm and and Broadcom, making it hard to produce smartphones or telecommunications equipment.
The Commerce Department stated that ZTE had been put on the list for "falsely informing the U.S. Government that it would or had disciplined numerous employees responsible for the violations that led to" a previous agreement in March 2017, for the violation of United States trade agreements. It was blocked from purchasing parts from USA companies, sanctions that had crippled the company.
Trump has indicated he views the handling of ZTE as part of his administration's broader effort to renegotiate trade conditions with China.
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