USA reaches deal with China's ZTE, commerce secretary says

Donald Trump

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

Amidst the white-hot trade tension brewing between the worlds two most powerful superpowers, U.S. President Donald Trump surprisingly announced his intention to help the beleaguered Chinese company which we covered here last month.

Commerce Secretary Wilbur Ross told CNBC this morning that the us has struck a deal to lift sanctions on the electronics giant.

Said "violator" needs to pay a penalty of a whopping $1 billion up front, also being required to put an additional $400 million in escrow as collateral for any prospective future breaches of trade laws. Commerce Secretary Wilbur Ross said today that ZTE has agreed to pay the largest penalty ever levied by the department's Bureau of Industry and Security (BIS), and that the company will "adopt unprecedented compliance measures".

ZTE could not be reached for comment by either Reuters or the Post. "It's unprecedented to have USA agents as monitors". Ross, speaking on CNBC today, said that a compliance team picked by the USA will be embedded at ZTE.

The May ban came after the government determined that ZTE violated terms of a 2017 settlement by failing to fire employees involved with illegally shipping USA equipment to Iran and North Korea.

California lawmaker recall sets up fall gas tax battle
Senator Roger Wicker , Republican of MS , won his primary contest as did Senator Bob Menendez, Democrat of New Jersey . However, Republicans did avoid a potential lockout in the governor's race after President Donald Trump weighed in.


ZTE ceased major operations in April after a seven-year ban was imposed on the company for breaking a 2017 agreement that was reached after it was caught illegally shipping goods to Iran and North Korea.

US goods exported to China past year totaled $130 billion while Chinese imports to the USA totaled $506 billion.

ZTE had been crippled by American sanctions, partly because it relies on American-made components to build its phones and cellular equipment.

ZTE, which sources up to 30 per cent of its components from the United States, paused its operations as a result and claimed its survival was at risk.

President Donald Trump has drawn fire from Congress for intervening in the case to rescue a Chinese company that had violated US sanctions against two rogue nations that have been pursuing nuclear weapons programs.

The agreement signals that China will be likely to quickly approve the $43 billion acquisition of NXP by Qualcomm Inc, a deal that has been pending for 18 months. ZTE's failure to comply with these terms triggered the suspended denial order that prohibits American companies from doing business with the Shenzhen-based company, plunging it into crisis.

Related News:



Most liked

Trump demands end to 'unfair' trade after G7 summit
Canada and Mexico, the other members of the 1994 pact, have been frustrated by the slow pace of talks to renegotiate NAFTA. Trump is set to hold the first meeting between a sitting US president and North Korean leader on June 12.

Justify wins Belmont to become 13th Triple Crown champion
Purchased for $500,000, Justify earned $800,000 for his Belmont win, giving him $3,798,000 in his brief career. He stood so quietly in the starting gate that jockey Mike Smith wondered if he'd respond when it sprang open.

Watch the ‘First Man’ trailer, the Neil Armstrong biopic starring Ryan Gosling
The film marks the second collaboration between Chazelle and Gosling after their critically acclaimed musical La La Land (2016). The film-which co-stars Claire Foy , Corey Stoll , Kyle Chandler , and Jason Clarke-is set to hit US theaters October 12.

Google Pixel 3 XL images reportedly leak out, show off a notch
After a description of the phone and a leak of a screen protector , we've now moved on to apparent prototypes of the Pixel 3 XL. While this looks like a legitimate prototype, it in no way means that the Pixel 3 XL will look the same commercially.

Argentina cancels friendly soccer match in Israel
Two million Palestinians have sunk into poverty as Israel and Egypt, citing security needs, clamped down on Gaza's borders. The Israeli army said that it had repelled around 10,000 Palestinians who converged on five points of the border.

NTSB updates on fatal Model X crash
Investigators blame a mistake made by Tesla's Autopilot system for a mistake that killed Wei "Walter" Huang in a Tesla auto crash. At the time, a company spokesperson said Tesla meant to file an official complaint with the federal government.

NBA Finals 2018 Game 4
James, who can be a free agent in July, stopped just short of saying the Cavaliers don't have enough to beat these Warriors. Durant won it past year by averaging 35.2 points, 8.2 rebounds and 5.4 assists. "But you definitely tip your hat".

Raw: DC Celebrates as Capitals Win Stanley Cup
I'm so happy for my teammates, for our fans back in Washington, my parents, my family, all my friends.it's just unbelievable". The Capitals had an especially rough history leading into this spring's triumph after joining the league in 1974-75.

Marcelo: Ronaldo Isn't The Boss At Real Madrid
Cristiano Ronaldo didn't appear in Real's new kit promo after speculation about his future at the club. Ronaldo's contract at the Bernabeu commits him to the reigning European champions until June 2021.

England 2 Costa Rica 0
Loftus-Cheek dragged wide from distance before goalkeeper Nick Pope came on for his debut among a swathe of England alterations. England were in the ascendancy and Rashford was exciting the Yorkshire crowd with a number of flashy touches and silky skills.

Grandmother gets pardon after Kardashian meets Trump
After reuniting with her family, Johnson said, she plans to spend her time advocating for changes in the prison system. On May 30, Johnson spent another birthday in prison while West went to the White House to advocate for her release.

Apple Unveils New OS with Upgraded Privacy Features
Apple publicly discussed this Facebook integration in 2012 with its iOS 6 operating system update for iPhones and iPads. Cook was speaking during Apple's annual developer conference, where his firm took veiled shots at Facebook .

BlackBerry KEY2 images leaked ahead of launch
With only a few days to go before its official announcement on June 7 , we are now getting more renders of the handset. Yet another important change is that the fingerprint sensor is integrated into the spacebar of the Qwerty keyboard.

Roseanne: 'I Begged Them Not To Cancel The Show'
Jarrett spoke about the tweets directed at her by Roseanne Barr during an appearance on an MSNBC town hall on Tuesday. Yet people have tried to defend Barr by putting ABC's cancellation in liberal-conservative terms.

China's ZTE signs preliminary agreement to lift United States ban
The resolution of the ZTE case may clear the way for the U.S.to make progress in its high-stakes trade talks with China. While the agreement has not been finalized, ZTE has apparently agreed to pay another hefty fine to revive its business.