Markets

US reveals ZTE settlement details, ban still in place

US reveals ZTE settlement details, ban still in place

As a telecoms and smartphone company, ZTE would struggle to make products without using software from Google, processors and radios from Qualcomm, or any of the other parts that the USA primarily supplies. But after the US government determined the company lied about its clean-up efforts, the Commerce Department imposed the death sentence, banning USA businesses from selling parts to ZTE, effectively kneecapping the company. A bipartisan amendment has been added to the upcoming "must-pass" National Defense Authorization Act, one that would put the ban back into place.

President Donald Trump, however, swooped in to save ZTE after negotiating with the Chinese government.

ZTE had agreed to pay an additional US$1 billion in fines to the US Department of Commerce and put US$400 million as surety as part of its settlement for violating US prohibitions against selling equipment to Iran.

ZTE must replace the boards of directors of two corporate entities within 30 days, according to a 21-page order signed June 8 and published on Monday on the Commerce Department website along with the settlement agreement.

ZTE is back in business: What now?

Commerce Secretary Wilbur Ross announced a deal last week to lift the ban, which had brought ZTE's factories to a standstill. It's a stunning turnaround, though it had been signalled for some weeks.




ZTE pleaded guilty a year ago to conspiring to evade USA embargoes by selling US equipment to Iran. However, it wouldn't be the first time the President chose the unexpected route.

The deal will involve ZTE paying a $1bn penalty and hiring a US-approved compliance team.

Republicans hoping to avoid a direct clash with the White House over the ZTE deal are eyeing that reconciliation process to mitigate the Senate's latest step. Although $1.4 billion is not a small amount of money, it sets the stage for other companies to also violate trade laws under the assumption that, at worst, they'll have to pay a hefty fine.

In February, U.S. intelligence officials warned Americans not to use smartphones made by ZTE or Huawei - another Chinese telecom company - as the communication technology could be compromised "to gain positions of power inside our telecommunication networks that provides the capacity to exert pressure or control over our telecommunications infrastructure". "For me, it was more than that".

Despite bipartisan support for the measure, Republicans are divided over whether it is wise to cross the president on this matter - and it is not clear that the effort to stymie Trump's deal will make it to the final version of the defense bill.

The NDAA is considered a must-pass defense package; Senate Majority Leader Mitch McConnell announced on Monday that it is "the top item on our to-do list".


  • Few Storm Chances For Monday

    Few Storm Chances For Monday

    EXTENDED: The slight storm chance continues into Sunday with possible morning rain and only an isolated afternoon storm chance. Do think the best chance of rain (if we were to get any) were to stay south of I-70 closer to the frontal boundary.
    Rose McGowan indicted by grand jury in cocaine case

    Rose McGowan indicted by grand jury in cocaine case

    McGowan was not in the courtroom at the time, and she reportedly will not be present when her trial date is scheduled. As for McGowan, the maximum sentence for the charges against her is 10 years, according to WTOP .
    Giants' Chris Mara jabs Patriots, Gronkowski after Justify wins Triple Crown

    Giants' Chris Mara jabs Patriots, Gronkowski after Justify wins Triple Crown

    Smith got the colt into a relaxed rhythm under a moderate pace heading into the backstretch, and he had an easy trip from there. Horses and riders aren't used to 11/2-mile races in the USA , where the focus is on sprinting. "He's sent from heaven".
  • Bethesda teases The Elder Scrolls VI with first trailer at E3 2018

    Bethesda teases The Elder Scrolls VI with first trailer at E3 2018

    What else is Bethesda studios releasing? Instead of a controller, you'll take on your enemies using your device's touchscreen. While on stage, Todd Howard mentioned that the map in Fallout 76 is four times larger than the map featured in Fallout 4 .
    Metal Wolf Chaos XD Announced

    Metal Wolf Chaos XD Announced

    It never made its way over here despite its full English voicing, but that's about to change thanks to Devolver Digital . Now players of the previously exclusive to Japan title can't let freedom reign once more as President Michael Wilson.
    AT&T-Time Warner decision could be sign for T-Mobile/Sprint deal

    AT&T-Time Warner decision could be sign for T-Mobile/Sprint deal

    When the trial ended, Judge Leon suggested the parties consider some remedies both could deal with depending on how he ruled. The companies' CEOs, AT&T's Randall Stephenson and Jeffrey Bewkes of Time Warner Inc ., testified in support of the deal.
  • Avengers: Infinity War Passes $2 Billion Mark

    Avengers: Infinity War Passes $2 Billion Mark

    Infinity war ended on a cliffhanger when half of the universe was wiped off after Thanos did his infamous snap of the fingers. He may not be the most powerful hero, but Iron Man is clearly the heart of the Marvel Cinematic Universe.
    Colorado wildfire expected to reach homes after evacuations

    Colorado wildfire expected to reach homes after evacuations

    The Disaster Assistance Center at the La Plata County Fairgrounds in Durango will be open from 9 a.m. until 1 p.m. on Monday. Fire officials expect smoke will be heavy and low in the Animas Valley, and visibility will be restricted Monday morning.
    Pakistan to face Scotland in first T20 in Edinburgh

    Pakistan to face Scotland in first T20 in Edinburgh

    Australia know they must build bridges across the cricketing world in order to fix reputations and trust. Langer said he would have sleepless nights trying firm up Australia's combination.
  • Resident Evil 2 Remake Gameplay Demo Coming To E3 2018

    Resident Evil 2 Remake Gameplay Demo Coming To E3 2018

    In a press release, Capcom said the "game has been completely rebuilt from the ground up for a deeper narrative experience". In any case, the Resident Evil 2 remake looks like it's going to be worth the unbelievably long wait.
    Woman Arrested For Transporting Children In Dog Kennels

    Woman Arrested For Transporting Children In Dog Kennels

    Neighbors said Cheeks just bought two German Shepherd puppies that she would put in the kennels in the back of her truck. Another police document said Cheeks verbally admitted to the incident before paying to be released from jail.
    Peter Navarro's apology to Justin Trudeau for 'hell' remark

    Peter Navarro's apology to Justin Trudeau for 'hell' remark

    Trump has repeatedly threatened to withdraw the United States from NAFTA and negotiate bilateral deals with Canada and Mexico. The Rust Belt has been one of the hardest regions hit because of US free trade with Mexico.