US Reaches Deal With China's ZTE - Secretary of Commerce

ZTE has been banned from purchasing sensitive technology from the US over its illegal sales to Iran and North Korea

ZTE has been banned from purchasing sensitive technology from the US over its illegal sales to Iran and North Korea

Reuters says that the deal will include ZTE paying a $1 billion fine for violating usa sanctions, as well as putting additional funds in escrow in case of any future violations.

The sources requested anonymity because they were not authorized to publicly discuss the matter.

U.S. Secretary of Commerce Wilbur Ross announced that ZTE will pay a $1 billion fine for its recent violations.

The measure planned in the Senate would retroactively impose sanctions originally levied against ZTE, reversing the consent agreement signed on Thursday, Senate Democratic Leader Chuck Schumer said.

ZTE's survival has been a topic of discussion in high-level U.S.




According to reports out of China, ZTE has been making plans to resume manufacturing within hours from the official lift of the US embargo, which deprived it of crucial USA -made components including SoCs, radio chips, and software. Not only that, but the entire board and executive teams must be fully replaced within 30 days from the time of signing the agreement.

A month ago, we reported that ZTE was on life support and had made a decision to mostly pause operations after being given a hefty ban from the United States government over lies it told as a part of a previous agreement stemming from related illegal shipments of products to Iran.

Washington and Beijing have pursued a halting series of trade talks, with Trump demanding a $200 billion reduction in its yawning trade deficit with China.

"By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China", the New York Democrat said on Twitter. Senator Marco Rubio (R-FL) has floated a proposal for Congress to block this sort of deal. In a memo to staff, Chairman Yin Yimin said ZTE would look to get back into business as soon as possible, and hold those responsible for the breach accountable, a company source said. This settlement is in response to the U.S. Commerce Department's Bureau of Industry and Security (BIS) denial order that was imposed as a result of ZTE violating its March 2017 settlement agreement. Shenzhen-based ZTE has a subsidiary in Richardson, Texas. While it did fire the four employees, the company admitted to making false statements about the others, handing out full bonuses. The deal will allow the company to restart operations after it pays a $1 billion fine and installs US compliance officers to monitor its activity. As a result, BIS activated a suspended denial order against the company which effectively prohibited them from using USA -built components in their devices and selling their products in the States.

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 Pentagon earlier this month ordered retail outlets on US military bases to remove from the shelves smartphones made by the two companies. The U.S.is maintaining its 10-year export ban on ZTE, but the ban is indefinitely suspended and is likely to remain suspended if ZTE complies with the U.S. trade laws.

Recommended News

  • New evacuations near Guatemala volcano set off panic

    New evacuations near Guatemala volcano set off panic

    According to volcanologists, eruption records of Fuego volcano, one of the country's most active volcanoes , dates back to 1542. These funds will help "Guatemala Red Cross support 3,000 of the most vulnerable survivors for three months", they added.
    US Social Security, Medicare finances worsening

    US Social Security, Medicare finances worsening

    Trump administration officials instead are counting on a strong economy to improve the solvency of Social Security and Medicare. That's in part due to lower payroll taxes because of lower wages and lower Social Security benefit taxes, the trustees said.
    Former NBA star to attend historic US/North Korea summit

    Former NBA star to attend historic US/North Korea summit

    Singapore authorities on Tuesday marked out a part of the island surrounding the Capella hotel as a special security zone for the days around the summit.
  • Top Republicans break with Trump over Federal Bureau of Investigation  confidential source

    Top Republicans break with Trump over Federal Bureau of Investigation confidential source

    The department originally denied Congress access to any of the documents, citing national security concerns. Hours after Ryan's comments, Burr told The Associated Press that he, too, agreed with Gowdy.
    Tetris Effect Announced for PS4 and PlayStation VR by REZ Creator

    Tetris Effect Announced for PS4 and PlayStation VR by REZ Creator

    To kick things off, Sony revealed a Tetris Effect trailer that brings a modern VR spin on the classic puzzle game. A player grading and leveling system as well as variable difficulty to encourage and reward replayability.
    French Open 2018: Defending champion Nadal eases into last 16

    French Open 2018: Defending champion Nadal eases into last 16

    Open and has reached the final at two of the past three majors - Wimbledon a year ago and the Australian Open in January. On tap Sunday, the fourth round begins with Novak Djokovic and Fernando Verdasco colliding for a 15th time.
  • Scott grabs US Open berth, 9 Aussies are in

    Scott grabs US Open berth, 9 Aussies are in

    Among those who failed to qualify were Vijay Singh and 19-year-old Joaquin Niemann, who contended last week at the Memorial. The event consisted of 36 holes played in one day with Millar finishing seven shots behind the final qualifier Paul Waring.

    Organic molecules on Mars

    It previously found hints of methane and organic compounds , but these findings are the best evidence yet. They hit pay dirt about 6.5 kilometres away, at two sites near Pahrump Hills at the base of Mt Sharp.
    Star Wars actress Kelly Marie Tran deletes Instagram posts following harassment

    Star Wars actress Kelly Marie Tran deletes Instagram posts following harassment

    The majority of Star Wars fans, including Last Jedi director Rian Johnson , are voicing their support for Tran on social media. She told Glamour magazine at the time: 'I was on Instagram , trying to do that whole thing, and people weren't very nice.
  • European Union sets July timeframe for USA tariff reprisals

    Trump is an absolute embarrassment to this country, and now he's off to a G7 summit to embarrass us on the national stage again. That plan fell through when the White House tried to insist that he agree to including a so-called "sunset clause" in the deal.
    Alexander Zverev says coaching code violation was ridiculous

    Alexander Zverev says coaching code violation was ridiculous

    Zverev and Thiem have always been identified as the two younger players most likely to threaten Rafael Nadal's dominance on clay. The Austrian will has a consistent performer in Paris as he has reached the semi-final in the last two seasons as well.
    Kobe Bryant defends LeBron James’ Cavs teammates:

    Kobe Bryant defends LeBron James’ Cavs teammates: "Those guys have talent"

    Game 3 , for the Warriors, has always been the difference between a hotly-contested series and a cruise into the next. James will see a historic playoff run end without his fourth ring as he'll suffer another defeat to the Dubs.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.