No agreement yet between US, China on ZTE: Trump aide

No agreement yet between US, China on ZTE: Trump aide

No agreement yet between US, China on ZTE: Trump aide

Under the new deal announced on Thursday, the company will pay a $1 billion fine, place another $400 million in escrow, and also make management changes. 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 U.S. relationship with China. The maintaining its 10-year export ban on ZTE, but the ban is indefinitely suspended and is likely to remain suspended if ZTE complies with the U.S. trade laws.

The Trump Administration still retains "the power to shut them down again" as well, and perhaps most important of all, a "compliance department" of the US Commerce's choosing will "literally be embedded into the company to monitor it going forward".

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. Secretary of Commerce Wilbur Ross said in a press release, "We will closely monitor ZTE's behavior". The Commerce Department said that ZTE must also put $400 million in escrow - a sum that it would forfeit if it violated today's agreement.

ZTE could not be reached for comment by either Reuters or the Post. China has vowed to retaliate on everything from US soybeans to airplanes, and said it will abandon its commitments if the USA follows through on its tariff threat.

ZTE has been banned from obtaining products and services from American suppliers after it breached an agreement reached for illegally shipping products to North Korea and Iran.

China-based ZTE has reportedly signed an agreement in principle that would lift a U.S. Commerce Department ban on the company which barred it from buying from U.S. suppliers.

The ban in effect nearly destroyed ZTE as it now relies on many components from American companies. The team will monitor ZTE's adherence to USA export control laws - an arrangement the department described as the most stringent requirements it has ever imposed.

Back in April, the United States government announced a complete and total ban of any USA components manufacturers from selling to Chinese telecom and handset giant, ZTE (HKG:0763). Separately, Qualcomm is trying to get Chinese approval for its pending US$44 billion acquisition of NXP Semiconductors NV NXPI.O . For other US companies, ZTE is a supplier.

Do you think this agreement will act as a good way to keep ZTE in check?

The U.S. had imposed sanctions on ZTE for illegal sales to Iran and North Korea, but the Chinese company agreed to take corrective action.

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