US President Donald Trump Set To Lift Zte "Death Penalty" After Paying $1.4billion
TechCapon
President Trump has concluded plans lift the “death penalty” he imposed on Chinese telecommunication giants ZTE. Earlier we brought news about the ban Trump placed on ZTE for violating US sanctions by supplying its equipment to Iran and North Korea. We called it a DEATH PENALTY because ZTE depends on accessories from American tech giants like Qualcomm and Intel to be able to manufacture its products and this ban will make it almost impossible for the Chinese company to produce it’s smartphones and other telecommunications gadgets.
US president Donald Trump said too many jobs in China would be lost, and instructed the Commerce Department to work out a deal that would lift the ban. The company have already paid $1 Billion fine to the department of commerce. The United States said on Wednesday that it signed an agreement with ZTE Corp that paves the way for the Chinese tech company to resume operations after a nearly three-month ban on doing business with American suppliers after Trump’s instructions, the Commerce Department went back and cut a new deal with ZTE that would lift the trade ban so long as ZTE replaced its board, paid a $1 billion fine, and put another $400 million in escrow should it err again.The ban on China’s No. 2 telecommunications equipment maker will be removed once the company deposits $400 million in an escrow account, the U.S. Commerce Department said in a statement announcing that an escrow agreement had been signed.
The ban which is most like described as a DEATH SENTENCE, which was imposed in April and caused ZTE to cease major operations, has been a source of friction between Washington and Beijing, which are engaged in an escalating trade dispute.
“Today’s announcement marks the beginning of the end of this long-running saga,” said Washington attorney Douglas Jacobson, who represents ZTE suppliers.
The escrow agreement is part of a $1.4 billion settlement ZTE reached with the Commerce Department last month to regain access to U.S. suppliers, whose components it relies on for its smartphones and networking gear. Finally ZTE can fully restart its operations. I’m quite sure other Chinese companies doing business will learn from this.
SOURCE:https://techcapon.com/us-president-donald-trump-set-to-lift-chinas-zte-death-penalty/
President Trump has concluded plans lift the “death penalty” he imposed on Chinese telecommunication giants ZTE. Earlier we brought news about the ban Trump placed on ZTE for violating US sanctions by supplying its equipment to Iran and North Korea. We called it a DEATH PENALTY because ZTE depends on accessories from American tech giants like Qualcomm and Intel to be able to manufacture its products and this ban will make it almost impossible for the Chinese company to produce it’s smartphones and other telecommunications gadgets.
US president Donald Trump said too many jobs in China would be lost, and instructed the Commerce Department to work out a deal that would lift the ban. The company have already paid $1 Billion fine to the department of commerce. The United States said on Wednesday that it signed an agreement with ZTE Corp that paves the way for the Chinese tech company to resume operations after a nearly three-month ban on doing business with American suppliers after Trump’s instructions, the Commerce Department went back and cut a new deal with ZTE that would lift the trade ban so long as ZTE replaced its board, paid a $1 billion fine, and put another $400 million in escrow should it err again.The ban on China’s No. 2 telecommunications equipment maker will be removed once the company deposits $400 million in an escrow account, the U.S. Commerce Department said in a statement announcing that an escrow agreement had been signed.
The ban which is most like described as a DEATH SENTENCE, which was imposed in April and caused ZTE to cease major operations, has been a source of friction between Washington and Beijing, which are engaged in an escalating trade dispute.
“Today’s announcement marks the beginning of the end of this long-running saga,” said Washington attorney Douglas Jacobson, who represents ZTE suppliers.
The escrow agreement is part of a $1.4 billion settlement ZTE reached with the Commerce Department last month to regain access to U.S. suppliers, whose components it relies on for its smartphones and networking gear. Finally ZTE can fully restart its operations. I’m quite sure other Chinese companies doing business will learn from this.
SOURCE:https://techcapon.com/us-president-donald-trump-set-to-lift-chinas-zte-death-penalty/
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