Commerce Department Agrees to Let ZTE Get Back to Business
The Trump administration has handed ZTE an olive branch, according to sources cited by the New York Times and Reuters. The Commerce Department has brokered a deal that will allow ZTE to resume operations as long as it agrees to pay a substantial fine, submit to American compliance officers, and wholly change is management team. If ZTE abides by these terms, the Commerce Department will lift its ban preventing U.S. companies from supplying ZTE with hardware and software. The Commerce Department socked ZTE with the ban last month after it discovered the company misrepresented actions concerning a previous settlement agreement. The Trump administration has been back-and-forth concerning ZTE’s fate over the last week and did not confirm the details of its recent trade meetings with China. Some U.S. lawmakers are not convinced ZTE should be allowed to resume operations and have been vocal in their opposition to any deal that sees ZTE allowed to buy U.S. technology.
Jun 2, 2018
ZTE may have to agree to a heavy fine and sweeping management changes if it wants to resume operations. The Trump administration is prepared to levy up to $1.7 billion in fines against the company to punish it for violating the terms of an earlier settlement.
May 22, 2018
The U.S. and China are near to reaching a deal that would offer ZTE reprieve from the seven-year ban enacted against it by the Commerce Department.
Jun 20, 2018
ZTE will be the topic of discussion at a meeting today between President Trump and members of the Senate and House of Representatives, reports Reuters. Trump wants to talk about the "problematic" amendment made to the National Defense Authorization Act (NDAA) earlier this week, which will keep certain sanctions against ZTE in place.
Jul 20, 2018
Senators have overturned an agreement added to the National Defense Authorization Act, or NDAA, that would have made it more difficult for President Trump to remove the ban instituted against ZTE. Earlier this year, the Commerce Department said ZTE lied about a previous settlement and banned the company from using American parts or software in its phonres for a period of seven years.