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ZTE can resume business in U.S if it pays a massive fine and changes management

By Cookie Monster - on 28 May 2018, 12:00am

ZTE can resume business in U.S if it pays a massive fine and changes management

Image source: CNN

ZTE may be resuming its business in U.S in a new deal agreement with U.S President Trump and his adminstration. 

According to Reuters, the Trump administration told lawmakers last Friday that ZTE is required to pay a US$1.3 billion fine, place U.S compliance officers at the company and change its management team if it is to resume business in the country. The president also posted a tweet on the deal: 

“I closed it down then let it reopen with high level security guarantees, change of management and board, must purchase U.S. parts and pay a $1.3 Billion fine.”

However, the deal ran into much resistance in Congress where Democrats and Republicians accused the Trump administration of giving in to pressure from China. The U.S intelligence and law enforcement agencies also have serious concerns that ZTE will pose a national security risk.

ZTE is banned from buying Qualcomm chips and other U.S components for 7 years after it broke U.S trade control laws by illegally supplying Iran and North Korea with U.S tech. The Chinese telecommunications company reportedly lost over US$3 billion after ceasing "major operating activities". 

Trump wanted to get ZTE "back into business", but the House Appropriations Committee unanimously voted to uphold the ban and reinforce sanctions against the Chinese telecommunciations company. 

Source: Reuters