Trump considers $1.3 billion fine to ZTE in lieu of export ban

Chinese company estimates losses of $3.1 million due
to the ban imposed by the U.S Department of Commerce

President Donald Trump said he was considering a new set of penalties for Chinese vendor ZTE
to replace a seven-year export ban imposed last month that is threatening the company’s survival.
Trump said he was reviewing the issue as a favor to the Chinese administration.  “As a favor to the
president [Xi Jingping], I am absolutely taking a look at it,” he said.

Last month, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) banned
American companies from selling telecommunications equipment and services to ZTE during a
seven-year period after the vendor allegedly did not live up to the terms of an agreement that
had been worked out after it illegally shipped telecom equipment to Iran and North Korea. In
early May, ZTE said it had ceased its major operating activities due to the export ban imposed
by the US government.

Wonder what impact this negotiation is having on following through with proposed June 12th
Summit between the US and North Korea. I heard China has been whispering in North Korea’s
ear. Shipping equipment to North Korea was one violation leading to the ban on ZTE. Let’s see
how these issues play out.

http://snip.ly/g2nm3

 

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