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

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

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

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.

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.

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.

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