Published: Sun, May 27, 2018
People | By Leon Thompson

ZTE may live, as Trump administration reportedly reaches deal to revive it

ZTE may live, as Trump administration reportedly reaches deal to revive it

ZTE was crippled following sanctions from the US.

The Trump administration reportedly told lawmakers on Friday that it has reached a deal to keep Chinese telecommunications giant ZTE in business after the USA banned the company from buying American products for violating sanctions.

Ma said that the recent USA ban on American firms selling chips to Chinese telecommunications equipment maker ZTE should be a "wake-up call" and that Tencent would likely work with partners along the supply chain or other investors, admitting that the company's expertise may not be enough on its own.

ZTE looks to have been thrown a lifeline by the U.S. Government, with a deal reached to allow the company to restart operations.

News of the ZTE agreement came almost a week after the US and China suspended plans to impose tariffs on as much as $200 billion of each other's goods, putting them on the brink of a trade war.

Trump took a jab at Democrats in his tweet, saying that Senate Minority Leader Chuck Schumer and former President Barack Obama "let phone company ZTE flourish with no security checks".

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Trump has said he would "envision" a revised penalty for the company, including a requirement that it appoint a new board of directors and pay a "very large fine" of perhaps $1.3 billion.

"If the administration goes through with this reported deal, President Trump would be helping make China great again", Schumer said. People briefed on the meeting said lawmakers were told to give the administration room to negotiate the matter and asked them to tone down public criticism of the deal. ZTE misled the Department of Commerce. Without crucial hardware components, ZTE's factories and most of its 75,000 employees are sitting idle.

ZTE, China's second largest telecom company after Huawei, is now on life support. They made only bad deals (Iran) and their so-called Trade Deals are the laughing stock of the world!

It appears that the Trump administration felt that the ban dealt too much harm too quickly. "President Trump should stop worrying about Chinese jobs, and start worrying more about American national security". Some believe that the current deal with ZTE is meant to promote further trade talks with China.

U.S. Commerce Secretary Wilbur Ross is scheduled to visit China next week for another round of talks.

"ZTE presents a national security threat to the United States - and nothing in this reported deal addresses that fundamental fact", said Sen. US -traded shares of NXP Semiconductors NV rose 4.7 percent after the announcement, as signs of better U.S. It seems the war of words between the United States and China is moving to a war on trade and a ...

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