tiptrot.com
tiptrot.com June 24, 2018


ZTE Said to Have Signed Preliminary Agreement to Lift US Ban

08 June 2018, 04:40 | Cedric Leonard

Report Tentative ZTE Deal with U.S. Could Bring Fine to $1.7B AFP 5 Jun 2018Washington DC

ZTE has been banned from purchasing sensitive technology from the US over its illegal sales to Iran and North Korea

The deal will involve ZTE paying a $1bn penalty and hiring a compliance team chosen by the US, Mr Ross told CNBC. China's second largest telecom equipment maker (after Huawei) has reportedly signed an agreement that would lift the U.S. Commerce Department's ban. It will also allow unfettered site visits to verify that United States components are being used correctly, and post calculations of U.S. parts in its products on a public website.

The settlement also requires ZTE to put US$400 million in escrow to cover any future violations and change its board of directors and executive team within a month.

Ross told CNBC that ZTE will pay the USA a $1 billion fine and put $400 million in an escrow account. ZTE seemingly had little hope of survival until President Donald Trump tweeted that he was pushing the Commerce Department to work with ZTE to remove the ban -- an unprecedented move by a USA president to countermand one of his own departments. In exchange, ZTE would have to pay a total of $1.7 billion in penalties, according to the the report.

ZTE's survival has been a topic of discussion in high-level US-China trade talks.

ZTE depends on US-made components to build its smartphones and networking equipment.

ZTE did not immediately respond to requests for comment. That's in addition to the $1 billion fine paid a year ago. They must also post calculations of the usage of US -made components on a public website. "China is willing to increase imports from the U.S.", Commerce Ministry spokesman Gao Feng told a weekly news conference.

President Donald Trump has drawn fire from Congress for intervening in the case to rescue a Chinese company that had violated USA sanctions against two rogue nations that have been pursuing nuclear weapons programs. "It's unprecedented to have U.S. agents as monitors ..."


Ross insisted Thursday that the ZTE matter was "quite separate and apart" from ongoing trade talks with China.

US companies Qualcomm (QCOM) and Intel (INTC) account for 43 percent of the materials used in ZTE's Chinese-made handsets and networking equipment, according to tech research firm IDC.

"It doesn't really move the ball forward on the deeper structural issues in U.S".

The Chinese Commerce Ministry said Thursday that some progress was made in talks that ended last weekend.

U.S Senate Democratic leader Chuck Shumer quipped, "By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China".

Shares of Qualcomm Inc rose as much as 4.7 percent while NXP jumped as much as 6.7 percent.



Other News

loading...
loading...

Trending Now

Scott majors run intact ... but only just
Today was a bit of a grind but somehow I've snuck through. "I played really nice this morning but it was tougher this afternoon". He's qualified for next week's US Open, a day after finishing in a share of eighth place at the European Tour's Italian Open.

Reporter’s Absurdly Off-Base Question To Serena Williams Prompts Apology
But the first visible clues that something was amiss surfaced in the third set of her doubles match with sister Venus on Sunday. They are two of tennis's most successful players, but also so much more.

Video shows Cowboys WR Terrance Williams allegedly drunk
Lewis says it is possible that Williams hit the light pole - however, Terrance doesn't recall that part of the crash. After saying Wright called him about the accident, he told police his phone was in the vehicle .

Apple gives users control of Siri with new Shortcuts and Suggestions tools
You'll get a 5 min warning when you're nearly out of time (and a button if you'd like to extend your time, of course). Towards the end of the keynote, Apple released a video, talking to the family members behind the developers .

Boba Fett joins the insane pile of upcoming Star Wars film projects
Our review of Solo describes the movie as "uninspired and visually boring ", albeit with intriguing potential for a sequel. We have countless Star Wars TV shows, Star Wars video games, Star Wars reality shows, and of course, Star Wars films.

Facebook to swap ‘trending’ topics for breaking news
Indeed, in its announcement , Facebook noted that the way people consume news on Facebook is changing. The feature accounted for an average of less than 1.5% of clicks to news publishers from.

Facebook has reportedly been sharing user data with phone makers for ages
In April, multiple committees on Capitol Hill had peppered him with questions about Facebook's dealings with Cambridge Analytica. The company also failed to identify alleged Russian interference in the 2016 presidential election in the United States .

USA officials cross into North Korea ‘to prepare Trump-Kim talks’
Whatcha gonna do about it?'" "I think people want to see if we can get the meeting and get something done", Mr. But Mr Moon suggested Mr Kim was not certain whether Washington could guarantee the stability of his regime.

Warriors await word on top defender Iguodala as LeBron looms
Klay Thompson and the Golden State Warriors will meet the Cleveland Cavaliers for the fourth consecutive year in the NBA Finals .

India clocks world's fastest GDP growth in Q4
It also predicted a deceleration in China's growth rate, estimating a 6.6 per cent growth in 2018, down from 6.9 per cent in 2017. Possibly, the biggest risk could be rising crude oil prices, which this month hit $80 a barrel, their highest since 2014.