Will the seven-year ban on ZTE come to an end?
ZTE Corp., the cellphone maker from China, is seeing signs of relief on the ban imposed on it by the US. The Commerce Department of the United States is said to have struck upon a preliminary deal by which it will lift its ban. With this, the company can buy from suppliers in the US.
The ban was imposed when ZTE tried to sell components bought from US and sold it to Iran and N. Korea through illegal trade. The company with 70,000 employees in China faced a terrible period through the ban. The telecommunication equipment maker from China will get back to work with this sudden lift of bans.
By the preliminary deal, the company would be fined $1billion and an additional $400 million to cover further violations in future. The agreement reached in 2017 was broken by the company by which the ban was imposed.
The ban has been amended but a definite agreement is still to come. If it goes ahead, a penalty of $1.7 billion would be paid in total to the US, say unknown sources.
ZTE has reprimanded its officials for involving in illegal sales with countries like Iran. Bonus will be withheld from these officers and employees, connected with the illegal sale. Top executives will be replaced. Officials from US will be allowed to supervise the site, to make sure that no further illegal activities are made by the company. These are conditions imposed by the US.
The Congress has however accused Trump of taking a soft attitude and giving in to pressure from China, to favor a company which has been a threat to the US.
The trade talks between China and the US will focus on ZTE. Further China’s offer to import American goods will also be given importance to. These will be followed by other aspects to be dealt with during the talks.
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