ZTE Close to Inking Deal That Will Let It Resume Operations
ZTE has agreed to preliminary terms with the Commerce Department that will eventually allow it to get back to business. The company has effectively shut down in the wake of a Commerce Department ban that prevents the company from using U.S. components and software in its phones. The company has taken job responsibilities away from select executives, filed official letters of reprimand, and is attempting to take back bonuses paid to some execs, says the Wall Street Journal. ZTE will also have to pay a sizable fine. The deal is not final and is still under review from the Trump administration, which has used the company's plight to invigorate trade talks with China. Even if a deal is struck and ZTE resumes operations, it is facing steep challenges due to disgruntled customers. For example an Italian carrier, called Wind Tre SpA, has demanded $117 million from ZTE due to stalled construction on base stations. Moreover, T-Mobile has walked away from a distribution deal worth more than a billon dollars, according to the Journal, thanks to ZTE's inability to supply it with phones and other gear. ZTE was the fourth-largest supplier of phones in the U.S. before the ban went into effect. It's not clear if or when a deal might be fully signed and put into effect.
May 25, 2018
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.
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.
May 13, 2018
President Trump took to Twitter this morning to suggest he's looking to recall the Commerce Department's ban against ZTE. "President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast," wrote the President.
Jun 29, 2018
ZTE is nearly ready to install a new board of directors, a step required by the U.S. Department of Commerce if the company wants to end the ban on U.S.
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