US and China Agree on Outline to Ease Tension and Save ZTE Corp
US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He has reportedly laid the groundwork for a deal which would end escalating tensions between the two nations and save the fast falling ZTE.
BEIJING (Reuters) – Washington and Beijing are nearing a deal that would remove an existing U.S. order banning American companies from supplying Chinese telecommunications equipment maker ZTE Corp, two people briefed on the talks told Reuters.
President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!
— Donald J. Trump (@realDonaldTrump) May 13, 2018
ZTE, hit by a seven-year ban in April after it violated sanctions against Iran and North Korea which adequately disabled its operations, would gain a relief if the deal goes through. In return, ZTE would have to roll out major leadership changes and also potentially face heavy fines. The deal would empower its business to survive, however, since many of its most important suppliers, including Qualcomm, are American and the ban has the potential to cause irreversible damage to its business. ZTE is also the fourth-largest vendor of mobile phones in the United States.
