ZTE reportedly signs preliminary deal to lift USA technology ban

ZTE reportedly signs preliminary deal to lift USA technology ban

The US has reached a deal with Chinese tech firm ZTE that will remove the ban on the company buying parts from US suppliers, Commerce Secretary Wilbur Ross has said.

A sign of ZTE Corp is pictured at its service centre in Hangzhou, Zhejiang province, China May 14, 2018.

What might "happen" is that ZTE will pay a US$1 billion fine, plus $400 million in escrow, an asset held by a third-party, to cover any future violations, according to a Reuters report.

He added that he did not think the arrangement would have any effect on tariff talks with China. Gogo Wireless was one of the first USA companies to speak publicly about the potential impact of the ZTE ban.

Reuters is reporting that there is now an "agreement in principle", although the Commerce Department says "no definitive agreement has been signed by both parties".

In total, the USA will collect $1.7 billion from the Chinese phone company for violating sanctions against Iran and North Korea.

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

U.S. President Donald Trump met with his trade advisers on Tuesday to discuss China's offer to import an extra $70 billion of American goods over a year in hopes of defusing a potential trade war between the world's two largest economies.

In addition to the money it will have to pay, Reuters says ZTE must replace its current board members and executive team within 30 days as part of the agreement, and also allow for unlimited access to its sites to prove that the hardware and software made in the US are being used correctly. Senate Minority Leader Chuck Schumer told Reuters he thought Congress should immediately take action to try to block the deal.

Last month, President Trump said he was prepared to rescind the ZTE export ban. It agreed to pay $890 million in fines, dismiss four employees, and discipline 35 others by either denying them their bonuses or reprimanding them. Smaller makers of optical components, including Oclaro and Acacia, rely more heavily on ZTE's business. It will also allow unfettered site visits to verify that USA components are being used correctly, and post calculations of United States parts in its products on a public website.

Related Articles

  • Warriors take 3-0 lead in NBA finals

    Warriors take 3-0 lead in NBA finals

    It is a hell of a luxury to have Durant on a team that had already won a title one year and 73 games the next. And if we can do that, guys can look in the mirror and live with themselves".
    Trump suggests Mueller leaked lawyers letters on Russian Federation  probe

    Trump suggests Mueller leaked lawyers letters on Russian Federation probe

    President Donald Trump's attorney says his legal team would go to court to prevent any effort to subpoena the president. They have been trying to sway Mueller away from seeking a subpoena to force Trump to testify before a grand jury.
    Hurricane Season 2018 — Travel Tip

    Hurricane Season 2018 — Travel Tip

    An average hurricane season produces 12 named storms, of which six become hurricanes, including three major hurricanes. Rick Scott said recently at the Governor's Hurricane Conference in West Palm Beach.
  • Kim Jong-un sacks top military chiefs before summit with Trump

    Kim Jong-un sacks top military chiefs before summit with Trump

    Nauert said the White House and State Department were also not soliciting other countries to pay for North Korea's accommodations. There have been fears that tensions will burst over into full-out war between North Korea and its western allies.
    First lady Melania Trump not attending G7, North Korea summits

    First lady Melania Trump not attending G7, North Korea summits

    Meanwhile, another tweet started doing the rounds online.in which every first letter of, her sentences spelled the word "HELP". On May 14, the White House announced that Melania Trump underwent a medical procedure to treat a benign kidney condition .
    Novak Djokovic Falls at the French Open

    Novak Djokovic Falls at the French Open

    Dimitrov took a 3-1 lead in the tie break, but he eventually lost six out of the next seven points to fall one set behind. After losing a point during the tiebreaker in the second set, Djokovic angrily whacked his racket into the clay.
  • The New XFL Names Its Commissioner & CEO

    The New XFL Names Its Commissioner & CEO

    He was later president and general manager of the Houston Dynamo, leading the franchise to two MLS Cup titles. Luck played in the National Football League for the Houston Oilers and was teammates with Archie Manning.
    Guatemala volcano erupts, killing children as lava spews into village

    Guatemala volcano erupts, killing children as lava spews into village

    The stratovolcano - a volcano built from layers of ash and lava - "has erupted on and off for centuries", according to the U.S. Aviation authorities there closed the worldwide airport due to the potential danger to planes by the ash, the AP reported.
    Trump can pardon himself, says Giuliani

    Trump can pardon himself, says Giuliani

    The President has never said he would pardon himself . " I don't think a president should pardon themselves ". He said that Trump wants to testify but that Giuliani and his team are leaning against recommending that.
  • Pedro Sanchez sworn in as new Spanish PM

    Pedro Sanchez sworn in as new Spanish PM

    The PSOE also had the support of the far left Podemos party which had previously called for a no confidence vote against Rajoy. " Prime Minister Pedro Sanchez , let's talk, let's address this issue, let's take risks, you and us", Torra said.
    Microsoft Has Agreed To Buy Coding Site GitHub

    Microsoft Has Agreed To Buy Coding Site GitHub

    It's also worth mentioning that this isn't the first time Microsoft approached the coding company with an intention to buy it. The Bloomberg report came just days after Business Insider reported that Microsoft had recently held talks to buy Github.
    Tristan Thompson fined $25K for Game 1 skirmish

    Tristan Thompson fined $25K for Game 1 skirmish

    Thompson lay grimacing in pain then went to the locker room with what was called a bruised left leg that needed re-taping. And then tonight in the Finals on the biggest stage, when our team played well, played our ass off - man, it ain't right.