ZTE will reportedly pay over $1 billion to lift United States ban

ZTE fined $1 billion		
		
	Danny Crichton

   	7 hours

ZTE fined $1 billion Danny Crichton 7 hours

In addition, Ross said that a compliance team chosen by the United States will be embedded at ZTE and that the Chinese company must change its board and executive team within 30 days.

The Trump administration reached a deal to ease sanctions on Chinese tech giant ZTE, Commerce Secretary Wilbur Ross said. That was a potential death blow to ZTE, which relies on US technology for an estimated 25 to 30 percent of its components. Reuters reports U.S Commerce Department ban on ZTE is likely to be lifted although " no definitive agreement has been signed by both parties" just yet.

ZTE shut down its operations at the beginning of May following Commerce's decision to ban it from purchasing equipment from USA companies.

It's not clear why the Trump administration was so willing to strike a deal with ZTE less than two months after handing down a harsh punishment. The US government will receive up to $1.7 billion in fines as part of the settlement.

Senate Democratic leader Chuck Schumer called the agreement "a 180-degree turn away from the president's promise to be tough on China". Key US components-such as glass from Corning, processors from Qualcomm, and software from Google's Android-were no longer available to the company, meaning it could not make many of its phones.

Under the terms of the settlement, ZTE is paying an immediate $1B fine, on top of the existing $892M in fines they've already paid related to their misconduct in this case. It agreed to pay $890 million in fines, dismiss four employees, and discipline 35 others by either denying them their bonuses or reprimanding them. "The Chinese public was up in arms because they believed the USA was destroying ZTE". Earlier this month, Trump announced he wanted to help ZTE, as part of negotiating a trade deal with China. US officials reached a deal on June 7, 2018, to ease sanctions that threatened to cripple Chinese smartphone maker ZTE, Ross said.

Truce lasts 5 days; India, Pak resume border firing
After the recent violations in ceasefire by Pakistan. "Pakistani forces have been firing mortars on our houses since morning". The locals showed the India Today crew remains of Pakistani mortar shells that exploded in the area.

The terms, they said, were in line with Reuters reporting on the US demands Friday.

Eric Hirschhorn, a former USA undersecretary of commerce who had been involved in the ZTE case, said "the government is merely setting a price for doing business instead of giving them the punishment they deserve". The company pleaded guilty in U.S. District Court in Texas previous year.

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

US chipmaker Qualcomm has been trying to buy NXP Semiconductors of the Netherlands, but given the company's global reach, the deal had to be approved by numerous countries' antitrust regulators, including China's.

Shares of Acacia and Oclaro extended their gains on Tuesday in heavy trading after news of the preliminary deal, ending up 1.7 percent and 1.8 percent, respectively.

Recommended News

  • From bourbon to boats, Mexico strikes back against USA steel tariffs

    It remains uncertain whether the G7 will even release a final communiqué, given the deep disputes that Mr. Bush is no longer the dumbest person we've ever had serving as president of the United States.
    GOP's budget recipe about complete before going to Cooper

    GOP's budget recipe about complete before going to Cooper

    He said Democrats "genuinely want to work with you" and were frustrated to have been shut out of the budget-writing process. How likely is that to work and could that backfire on them? "We skipped a couple steps for expediency", Woodhouse said.
    Are Kendall Jenner & Anwar Hadid DATING??

    Are Kendall Jenner & Anwar Hadid DATING??

    Her sisters may all be in relationships, but Kendall Jenner is enjoying the single life to the fullest extent. The pair have since unfollowed each other on Instagram , with Peltz deleting all photos of herself with Hadid.
  • Trump may seek separate trade deals with Canada, Mexico: U.S. adviser

    Trump may seek separate trade deals with Canada, Mexico: U.S. adviser

    President Donald Trump take part in a joint press conference at the White House in Washington, D.C., on February 13, 2017. Trump's National Economic Council, Larry Kudlow, told reporters at the White House briefing that Mr.
    Organic matter found on Mars in 'significant breakthrough'

    Organic matter found on Mars in 'significant breakthrough'

    Curiosity has detected large organic molecules inside ancient Martian rocks, as well as methane cycles now active on the planet. She said the discoveries break down some of the strongest arguments put forward by life-on-Mars skeptics, herself included.
    Germany's Bayer to complete Monsanto purchase on Thurday

    Germany's Bayer to complete Monsanto purchase on Thurday

    After Bayer acquires Monsanto, "suddenly, the leading seller of GMOs [will] be European, rather than American", Charles writes. Last September, Monsanto accepted an offer from Bayer to $57 billion to its shareholders and assume $9 billion in debt.
  • Report outlines fresh twist on Liverpool's £61m pursuit of Nabil Fekir

    Report outlines fresh twist on Liverpool's £61m pursuit of Nabil Fekir

    But Aulas has revealed that the transfer is not close and is unlikely to happen before the start of the World Cup next Thursday. Fekir is expected to leave his boyhood club this summer has reportedly told Lyon that he would prefer a move to Liverpool .
    Xbox One E3 Week Sale

    Xbox One E3 Week Sale

    With E3 just a few days away, it looks like Xbox wants to invite you into their console family with a huge sale. In addition to all of that you will be able to save money on an Xbox console as well.
    Donald Trump Denounces Rumors About Melania Trump's Absence

    Donald Trump Denounces Rumors About Melania Trump's Absence

    The White House offered few updates on the first lady's condition, and this week, her office lashed out at journalists for asking. Trump underwent a kidney procedure and recuperated in the hospital for five days, according to the White House .
  • 'Volcano of Fire' showing more signs of activity in Guatemala

    Numerous victims are unrecognisable, with officials warning that DNA testing and other methods may be needed to identify them. Almost 70 people are dead, hundreds hurt and thousands still evacuated following a volcano eruption in southern Guatemala.
    BMW X5 is now bigger and arrives in November

    BMW X5 is now bigger and arrives in November

    The two diesel engine options will include a 400bhp unit in the M50d and a 265bhp unit in the xDrive30d. In front of the driver, the head-up display is now larger with 3D graphics and more display content.
    Trump commutes life sentence of grandmother after Kim Kardashian meeting

    Trump commutes life sentence of grandmother after Kim Kardashian meeting

    Following last week's meeting between President Trump and Kim Kardashian-West, an Aliceville inmate is now pardoned. Barnett, said earlier that Johnson feels overwhelmed with emotion and like she's been "resurrected from the dead".

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.