United States to Lift Sanctions Against ZTE (After it Pays $1.4B)

08 June, 2018, 10:48 | Author: Barbara Daniel
  • ZTE has reportedly made an agreement with the U.S. to lift Denial Order

Last month a source familiar with the talks said that the Trump administration had struck an agreement with ZTE.

The United States and China have reached a deal that allows the Chinese telecommunications giant ZTE to stay in business in exchange for paying an additional $1bn in fines and agreeing to let USA regulators monitor its operations.

The deal will involve ZTE paying a $1bn penalty and hiring a compliance team chosen by the US, Mr Ross told CNBC. It's important to note that this deal is not confirmed, with Commerce Department spokesman James Rockas saying that "no definitive agreement has been signed by both parties". He countered by highlighting that ZTE "buys a big percentage of individual parts from United States companies" and saying the telecom giant's fate reflects the USA relationship with China. Marco Rubio (R-Florida) on Thursday.

US Commerce Secretary Wilbur Ross, who is now in Beijing for trade talks with China and told CNBC that a deal worth $1.4 billion had been struck.

But some analysts said that trading lenience on ZTE for Chinese agreement to buy more American products would leave major issues unresolved.

The Congress members who introduced the bill, as well as the intelligence agencies that flagged ZTE and Huawei hardware as risky, believe that Chinese devices could contain spyware and backdoors that could be a threat to national security. The company already has a USA court-appointed monitor.

That was a serious problem for ZTE because the company is heavily dependent on United States components for its smartphone business. "That's good. But it will do nothing to keep us safe from corporate and national security espionage".

U.S Senate Democratic leader Chuck Shumer quipped, "By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China".

The two countries have threatened to impose tariffs on up to $200 billion worth of each other's products in a dispute over China's tactics to supplant USA technological supremacy, including demands that US companies hand over trade secrets in exchange for access to the Chinese market. The U.S. government feared that ZTE would then be exporting that technology to sanctioned countries again. "The Chinese public was up in arms because they believed the US was destroying ZTE". To satisfy Trump's demand for a reduction in the $375 billion in goods US trade deficit with China, the government in Beijing has reportedly offered to buy up to $70 billion more each year in USA products. The first settlement with ZTE set a record for civil and criminal penalties in an export control case.

The suppliers include Qualcomm, Broadcom, and Intel Corp, as well as smaller optical component makers Acacia Communications Incand Oclaro. Its global smartphone market share is about 11 percent, and its total revenue was about $92 billion in 2017.

Recommended:

  • Manchester United agree £52m Fred fee with Shakhtar Donetsk

    The Brazilian is set to replace Michael Carrick who retired to join the United backroom staff at the end of last season. United might not yet be finished with transfer activity prior to the June 14 kickoff of the World Cup.
    Dejected Serena Williams waits to learn extent of injury blow

    Dejected Serena Williams waits to learn extent of injury blow

    The possibility of Williams facing Sharapova had been grabbing attention since the draw was made at Roland Garros 10 days ago. Her game matches so well against mine, and it is hard , because like I keep saying, I've given up so much to be here".
    US  to impose tariffs on steel, aluminum from European Union  soon

    US to impose tariffs on steel, aluminum from European Union soon

    Mexico said it would levy tariffs on American farm products, while Canada zeroed in on the same metals that Trump has targeted. In a statement , Harley-Davidson said retaliatory tariffs "would have a significant impact on our sales" in those countries.
  • Save $30 on Amazon's New Fire TV Cube

    Save $30 on Amazon's New Fire TV Cube

    Plus, for a limited time, customers can pre-order Fire TV Cube and Amazon Cloud Cam together for $199.98 - a $40 savings. Then imagine that control plugged into your TV so you can control everything plugged in there with your voice as well.
    Download the macOS Mojave Wallpaper Day & Night Versions

    Download the macOS Mojave Wallpaper Day & Night Versions

    Onstage, Apple's VP of software Craig Federighi described Safari's new anti-tracking features in unusually confrontational terms. Along the same theme, the desktop background under Mojave shifts based on time of day , a feature Gmail users will recognize.
    Where is Melania Trump? Mystery as public absence extends to 22 days

    Where is Melania Trump? Mystery as public absence extends to 22 days

    Melania was last seen on May 10 when she stood by the President and welcomed home three American detainees from North Korea . In a tweet storm on Friday, Black wrote: "I've been obsessing a bit over Melania's disappearance - and that's what it is".
  • Warriors take stranglehold on Finals

    Warriors take stranglehold on Finals

    So, I can't - I don't really know. "But we've got to come out and got to play 48 minutes". The Warriors , just like last season, now own a 3-0 series lead.
    Hawaii volcano lava destroys hundreds of homes overnight

    Hawaii volcano lava destroys hundreds of homes overnight

    At the Kilauea summit, another explosion occurred early Tuesday morning, accompanied by a 5.5 magnitude natural disaster . County Managing Director Wil Okabe said his own vacation home in Kapoho Beach Lots is also threatened.
    Warriors fans gave J.R. Smith a free-throw line 'MVP' chant

    Warriors fans gave J.R. Smith a free-throw line 'MVP' chant

    Las Vegas is thinking Golden State in Game 2 of the NBA Finals - and big. "You know, that does nothing for us or for me". LeBron James could move up on a couple of NBA Finals individual lists in Game 2 - but also fall backward in another.
  • Antoine Griezmann puts Premier League suitors on alert

    Antoine Griezmann puts Premier League suitors on alert

    As Giraldo noted, Griezmann previously said he will make a choice before the FIFA World Cup, which begins on June 14. But Messi is keen to play alongside the 27-year-old at Camp Nou.
    Liverpool to complete £55m Nabil Fekir transfer in next 24 hours

    Liverpool to complete £55m Nabil Fekir transfer in next 24 hours

    Fekir is set to play for France on Saturday evening against the U.S. , a game that will take place in Lyon's Stade des Lumieres. Liverpool have allegedly reached a deal to sign Lyon playmaker Nabil Fekir .

    Trump, Trudeau tariff phone call gets testy after War of 1812 mention

    Economy Secretary Ildefonso Guajardo said that Mexico would now "surely" look to import more pork from Europe. However, one Mexican producer disagrees with Hernández's assessment that pork prices won't rise.


Popular

Severed rattlesnake head bites Texas man
A Corpus Christi man is recovering after he was bitten by a rattlesnake , even after the snake had already been beheaded . Sutcliffe explained: 'A normal person who is going to get bit is going to get two to four doses of antivenom.

Trump may invite Kim to visit White House. Or he may not
Trump is seeking to get North Korea to agree to denuclearize but acknowledged that is not likely to happen immediately. That willingness to make a deal is something he will assess once he sits down with Kim, Trump suggested.

The United States will "patrol" the South China sea
At the same time, Ng called out China for intensifying its military buildup on reclaimed reefs in the South China Sea. Militarizing the islands, Mattis said, will not enhance China's standing in the world.

The 50 Highest-Paid Sports Stars in the World
Atlanta Falcons quarterback Matt Ryan is the highest earning National Football League player, coming in at ninth with $88 million. The Forbes' 100 highest-paid athletes list is usually dominated by men, but this year, no women are included at all.

Tesla (TSLA) rallies ~10% on Elon Musk’s confidence as the shorts scramble
Tesla also announced it has deployed 1 gigawatt-hour of energy storage globally. In April, Tesla said it was making 2,270 vehicles a week.

Experimental breast cancer treatment allows Florida woman to return to normal life
Postal Service's breast cancer stamp enabled a landmark study that showed which women need chemo and which do not. A 21-gene test called Oncotype Dx that has been around since 2004 has helped guide some decisions, post-surgery.

Comeback king Zverev and Djokovic into French Open quarters
After losing a point during the tiebreaker in the second set, Djokovic angrily whacked his racket into the clay. Buzărnescu will next face 13th seed Madison Keys of the United States, who beat Japan's Naomi Osaka 6-1, 7-6.

Bill Clinton Says He 'Does Not' Owe Monica Lewinsky An Apology
When pressed about why he hadn't reached out to Lewinsky personally, Clinton told NBC , "this was litigated 20 years ago. Clinton said that he likes the #metoo movement, calling it "way overdue", but adding he "doesn't agree with everything".

Trump Says June 12 Meeting With Kim Jong-un Is Back On
President Trump announced Friday that his on-again-off-again meeting with North Korean leader Kim Jong-un is once again on. Kim Yong-chol is a close aide of Kim Jong-un and is vice chairman of the ruling Workers Party's central committee.

Facebook accused of sharing data with Apple, Samsung, and Amazon
Despite Facebook's defence of its behaviour, one British digital rights campaign group has expressed concern. In other words, they don't need to ask for additional consent from users just as Facebook doesn't need to.