Published: Sun, June 10, 2018
Finance | By Jaime Brady

US cuts a deal with Chinese smartphone maker ZTE

US cuts a deal with Chinese smartphone maker ZTE

The fines announced on June 7 come on top of $892 million ZTE has already paid for breaking USA sanctions by selling equipment to North Korea and Iran.

The deal includes a $1 billion penalty against ZTE and a US-chosen compliance department to be embedded into the company.

After a personal plea from Chinese President Xi Jinping to help the company get back into business, President Donald Trump said last month that the initial fine on ZTE would lead to "too many jobs in China lost" and that he would direct his Commerce Secretary to "get it done".

The ban, which traces back to a breach of the USA embargo on trade with Iran, had prevented China's second largest telecoms equipment maker by revenue from buying the us components it relies on to make phones and other devices.

Recently, ZTE has signed a preliminary agreement that would lift the ZTE ban imposed by the US Department of Commerce that prevented US companies from buying electronic components from Chinese suppliers.

Under this new agreement, ZTE will retain compliance contractor in addition to the three-year court-appointed monitor imposed by the plea agreement. "It's unprecedented to have US agents as monitors ..."

Warriors-Cavaliers Game 3
But unlike Durant, Smith and Love didn't keep it going. "If we win tonight, then we knot it up at 2-2". It was also the defining shot in what may be remembered as the defining game in Durant's career.

U.S. first lady Melania Trump to skip G7, North Korea summit
Huffington Post notes "working " is a favourite idiom used by the president , particularly in regards to talking about the media. Grisham told the AP the first lady would like to be "out and about promoting her initiatives" but "her health comes first".

Luxembourg - SpaceX launches satellite for SES in its 11th mission this year
SpaceX made no attempt to recover the earlier-generation "block 4" first stage , which was limited to only two flights. After extensive tests and checkout, SES-12 should enter operational service early next year.

According to Reuters, ZTE has signed a preliminary agreement that will lift the ban on United States companies providing ZTE with goods.

ZTE ceased major operations earlier this year because of the ban. The deal will allow the company to restart operations after it pays a $1 billion fine and installs US compliance officers to monitor its activity.

As part of the deal, sources said, ZTE promised to replace its board and executive team in 30 days.

Ross, speaking about the agreement on CNBC on Thursday, said he did not think the arrangement would have any effect on tariff talks with China. "The strictest and largest settlement fine that has ever been brought by the Commerce Department against any violator of export controls".

The new deal will also see ZTE paying $400m into a holding account to insure against future violations. ZTE paid 190 million dollars for such violations, but the dispute continued because the Commerce Department alleged that the company cheated the regulators and did not sanction the employees who authorized the transactions. He later tweeted the ZTE talks were "part of a larger trade deal" being negotiated with China. Senate minority leader Chuck Schumer (D-NY) has said publicly that "Both parties in Congress should come together to stop this deal in its tracks".

Like this: