Home / Tech News / The U.S. and ZTE reach a deal that will lift export ban

The U.S. and ZTE reach a deal that will lift export ban

The United States government has made a deal with Chinese telecommunications giant ZTE that, once completed, will lift the ban preventing the company from working with American suppliers. The agreement eases tensions in the U.S.-China trade war because the seven-year denial order, which the Trump administration imposed in April after ZTE violated sanctions against North Korea and Iran, was a major point of contention between the two countries. Our statement on #ZTE and the escrow agreement: pic.twitter.com/w0Bbej1mAU — U.S. Commerce Dept. (@CommerceGov) July 11, 2018 According to a statement from the Commerce Department , once ZTE completes a $400 million escrow payment, the department’s Bureau of Industry and Security (BIS) will lift the ban. The Commerce Department says “the ZTE settlement represents the toughest penalty and strictest compliance regime the Department has ever imposed in such a case. It will deter future bad actors and ensure the Department is able to protect the United States from those that would do us harm.” Many U.S. lawmakers are still concerned about the security repercussions of the deal, however, and a bipartisan group of senators introduced legislation last week that could potentially restore some of the penalties imposed on ZTE. The denial order was imposed because the Commerce Department claimed that ZTE violated U.S. laws against selling equipment containing American technology to Iran and North Korea, and not only failed to follow the terms of a 2017 agreement with the Department of Justice, but also lied to the U.S. The ban cut off access to several of ZTE’s key suppliers, including Qualcomm, and was severe enough that it was described as a “death penalty” for the company, which reportedly expected to lose $3 billion as a result . But ZTE quickly became a pawn in the U.S-China trade wars and the Trump administration said in May that the company could continue buying from U.S.

Visit link:
The U.S. and ZTE reach a deal that will lift export ban

About Tech News Reporter

Check Also

Inside the rise and reign of supergiant venture capital rounds

There was a time not so long ago when nine-figure venture capital rounds weren’t a near-daily feature of tech business news. But now funding rounds of $100 million or more cross the wires with  stunning frequency . The  era of supergiant rounds  is now the new normal. This is attributable, in part, to billions of dollars flowing into new venture capital funds — the largest of which are raised by the oldest, most entrenched firms — and competition from relative newcomers, like  SoftBank . Q2 2018 may have set new records for worldwide VC deal and dollar volume in this post-dot com cycle, but that belies an important fact: Investors are dumping the bulk of capital into a relatively small number of companies. The rise of supergiant rounds wound up in a “takeover” of the market. The chart below shows the proportion of capital raised in rounds of $100 million or more, tracing the period between Q1 2017 and the end of Q2 2018. Just a little over a year ago, in Q1 2017, nine and 10-figure venture capital deals accounted for a healthy 35 percent of global dollar volume. Five quarters later, in Q2 2018, $100 million-and-up deals accounted for a majority — some 61 percent — of equity funding into upstart technology companies. It’s not just that these mega-rounds are eclipsing smaller counterparts as a percent of dollar volume totals. Supergiant rounds also appear to be driving most of the growth in reported dollar volume, as the chart below shows. Between Q1 2017 and Q2 2018, reported dollar volume in sub-$100 million deals grew by around 42 percent. By that same token, dollar volume in nine and 10-figure venture deals ballooned by about 325 percent over that stretch of time. Granted, this is all based on recorded data in Crunchbase. And like all private-market databases, Crunchbase is subject to some reporting delays

Leave a Reply

Your email address will not be published. Required fields are marked *