ZTE inches closer to resuming business in US

13 July, 2018, 07:43 | Author: Regina Silva
  • Senators want to nix Trump deal to help China’s ZTE

Commerce on Wednesday said it signed an agreement with ZTE, China's No. 2 telecommunications maker, paving the way for it to resume operations after a almost three-month ban on doing business with American suppliers. After many suspensions, fines and a total trade ban, now the DoC has announced on Twitter that the agreement is about to be finalized. Everything could have been over if ZTE had said it was some miscommunication, but the United States found out the company deliberately ignored the embargo and went ahead with Iranian deal.

Tom Cotton (Arkansas) and Roy Blunt (Missouri) and Democrats Chris Van Hollen (Maryland), Mark Warner (Virginia) and Bill Nelson (Florida) told leaders of the armed services committees of both the Senate and the House of Representatives that they strongly oppose the Commerce Department's deal with ZTE.

According to the reports, the ban on China's ZTE Corp. will be removed once the company deposits $400 million in an escrow account, the U.S. Commerce Department. But it looks like ZTE has finally worked out the kinks with the US government, and the ban is being lifted. Additionally, ZTE paid a US$1 billion fine to the US Treasury last month.

Even though some White House officials had hoped Trump's handling of ZTE might help improve relations, there are signs that tensions between Washington and Beijing are only worsening.

A measure to reinstate the prohibition on allowing ZTE to buy from USA suppliers, pushed by Sens.

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The company last week received a limited one-month reprieve from the Commerce Department to maintain existing networks and equipment.

Under the new settlement, ZTE was required to change its board and management within 30 days. The current ban could have lasted up to seven years.

ZTE also agreed to allow the US government unfettered site visits to verify USA components are being used as claimed by ZTE, and to post calculations of the USA components in its products on its website in Chinese and English.

A little after that, the U.S. Senate voted to reinstate the sales ban on ZTE, citing national security as their reasoning. But because it is not in the House version of the bill, lawmakers from the Senate and House armed services committees are now negotiating a compromise. He called the deal "terrible", adding that it would undermine United States national and economic security. It also broke news of the ban in April.

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