Home / Tag Archives: zte

Tag Archives: zte

Senate gives up on ZTE sanctions

Though a number of US senators have been seeking to block President Trump's deal with ZTE that lets the Chinese firm circumvent sanctions put into place by US officials earlier this year, they have now backed off on that effort. In June, the Senate p...

Read More »

US lifts ZTE export ban

ZTE has another chance at redemption. The US Commerce Department has lifted the export ban on the Chinese mobile giant now that it has met all the terms required to get a full reprieve. Officials confirmed that ZTE had put $400 million in escrow on...

Read More »

ZTE replaces leadership to meet US demands

ZTE is fulfilling one of the US' key demands in its attempt to avoid a renewed export ban. Days before a 30-day deadline, the Chinese tech giant has replaced a whole suite of executives, including its CEO. All of the new leaders are company veterans,...

Read More »

Senate votes to reinstate ZTE ban in the US

The Trump administration's decision to work with Chinese President Xi Jinping to bring ZTE back to business didn't sit well with lawmakers from both sides. A group of Senators from the Republican and Democratic parties recently amended the National D...

Read More »

ZTE has few cards left to play to avoid ‘death penalty’

It’s not every day you see a company that employs 75,000 and once had a market cap of $20 billion facing instant doom on an hour-by-hour basis. But that’s the situation that Chinese telecom firm ZTE finds itself in right now. Following revelations that the company sold equipment with U.S. technology to Iran and North Korea in violation of U.S. sanctions, President Trump decided to kill the company . Then he decided not to kill it . Now, this week, Congress is deciding whether to kill it or not, much to the chagrin of the White House , who thought the matter closed. Senators like Tom Cotton (R-AK) this week have said they believe that the “ Death penalty is right penalty for ZTE’s behavior .” Before we go further, let’s step back for a moment and just muse about what is happening here. Congress and the White House are politicking back and forth over the fate of one of China’s crown jewel tech companies, with tens of billions of dollars and tens of thousands of jobs at stake. If that isn’t the definition of hegemonic power, I don’t know what is. And remember that both branches of government are run nominally by the same party. China has been leveraging its long-awaited approval of Qualcomm’s acquisition of NXP Semiconductors to push the Trump administration to concede to ZTE’s survival. The Trump administration has gotten that message loudly and clearly, which is among many reasons why it ended up selecting a $1 billion fine as the penalty and trying to move on. Congress, though, knows no such logic. It can’t handle the sort of multistep logic that connects Qualcomm’s success on NXP to U.S

Read More »

ZTE fined $1 billion

After much negotiation with the Trump Administration , Secretary of Commerce Wilbur Ross confirmed this morning that ZTE, the Chinese telecommunications giant, has agreed to a $1 billion fine. That penalty was assessed following an investigation showing that ZTE had violated U.S. sanctions by selling telecom technology to Iran and North Korea. Ross made the comments on CNBC’s morning show Squawk Box. This was an incredible scare for ZTE. As part of the original settlement with the U.S. government last year, ZTE had agreed to accept a $1.19 billion fine and made personnel changes to satisfy U.S. regulators. The Trump administration then took that penalty even further, banning U.S. companies from selling components to ZTE for seven years , components critical to ZTE’s entire product line. That decision was expected to kill the company , which employs roughly 75,000 workers and had been worth about $20 billion before the ban. While the ban seemed to be the end of the company, President Donald Trump seemed to offer it something of a reprieve on May 13, when he tweeted that he would instruct the Commerce Department to try to work out a deal that would offer “a way to get back into business, fast.” While the president is known for mercurial decision-making, the turnabout deeply surprised DC insiders, with many national security officials vociferously opposed to any deal to resuscitate the company. In addition to a $1 billion fine, the company has made several personnel changes, including rotating out the company’s Communist Party leader

Read More »