Trump Comes to the Rescue of Chinese Tech Giant ZTE
After much deliberation, Wilbur Ross, the Commerce Secretary, announced that the US had successfully managed to reach an agreement to lift sanctions on Chinese telecom equipment maker, ZTE. Ross shared that they had executed a deal with ZTE to bring an end to the current phase of development with them.
Other than making monetary payments, ZTE has been put to task to implement changes to its management and present those changes for closer examination by the US compliance team. Ross shared that he believes that with this settlement was going to be effective after it brought down the $17 billion company to its knees, and almost put them out of business. He further added that their suggestions for new management and board would serve as a great deterrent for any potential bad actors.
The deal puts an end to a tense period of negotiations between the US and Chinese governments with regards to matters on the telecom equipment maker. Initially, the US had placed sanctions on ZTE for selling goods with US parts into Iran and North Korea. Given the fact that the two nations currently have sanctions in place at the moment, ZTE had broken the law.
Once the Commerce Department determined that ZTE had not abided by the original sanctions, the tech company was hit with an even harsher penalty by being refused the right to buy US parts. The penalty served as a major blow to the tech company because they are heavily reliant on US-made parts in order for them to stay in business.
Some Trump administration officials had attempted to frame the ZTE sanctions as an entirely separate national security issue before the president stepped into the arena to pull the discussions into the broader talks over trade.
Incredibly, following the deal, the Trump administration has come under fire from lawmakers in both parties who have raised national security concerns about ZTE. US intelligence agencies and other countries are said to be in opposition to the move too.
According to Peter Navarro, who serves in close proximity to the president in a number of roles as an assistant, director of trade and industrial policy, plus as a director of the White House National Trade Council, US President Donald Trump executed the deal as a favor to Chinese president Xi Jinping.
When quizzed by reporters about his take on President Trump’s decision to lift sanctions against the Chinese telecom company ZTE after it had acted in violation of sanctions, despite Iran and North Korea being two nations considered as national security risks, Navarro cited that Wilbur Ross would be better placed to respond to those matters in detail.
At present, analysts believe that the US president is hopeful that his Chinese counterpart Xi Jinping returns the favor in a yet to be disclosed fashion. US companies have been quick to bemoan the fact that they have been locked out of the Chinese market when it comes to exploring investment ideas. Those who are able to do so are required to entire into joint ventures with local companies and expose their trade secrets to them.
Many are hopeful that if either of these restrictions could be done away with, then this would represent a significant change of tact and be recorded as a win for the USA. Having made claims to suggest that he is an excellent negotiator and people-reader, President Trump will be hopeful that Xi Jinping responds in kind to confirm his assertions.
More in Business
Robert De Niro Bans President Trump From Entering His Nobu Restaurants!
The screen legend Robert De Niro, who is also a co-owner of prestigious Nobu restaurants, made a surprising statement of banning...June 14, 2018
Trump Sensationally Cancelled the Singapore Summit in Letter to Kim Jong Un
Last week, news broke that President Donald Trump was not expected to meet up with his North Korean counterpart, leader Kim...June 14, 2018
Ashton Kutcher Just Donated $4 Million to the Ellen Degeneres Wildlife Fund
Ashton Kutcher, the famous Hollywood actor, surprised Ellen Degeneres when he made a stop at the set of her show last...June 14, 2018
The White House just Discovered a Growing Sinkhole in Its Lawn!
The prestigious White House serves as the official emblem of the United States. It is where the POTUS lives who lead...June 14, 2018
A Female Tourist Got Kidnapped After Landing in Bangkok Airport!
We all dream of traveling around the world while we’re still young and able. That’s why we see to it that...June 14, 2018
A Teacher Just Got Invited to Her Student’s Harvard Graduation 21 Years Later!
Our teachers play a great part in our lives not only in educating us but also in molding us to become...June 14, 2018
Hero Science Teacher Tackles Gunman at Indiana Middle School
In an amazing turn of events, on Friday morning, a science teacher at a suburban Indianapolis middle school managed to tackle...June 14, 2018
Nikki Haley Walked Out from U.N. Security Council After Palestinian Deaths in Gaza
Israel and the United States came under fire when Israel resorted to using live ammunition to attack the Palestinians who protested...June 14, 2018
Study Shows that Teens Factor-in the Essence of Health When Eating
The latest revelation by Stanford researchers reveals that teenagers actually pay attention to what they are told by their parents about...June 14, 2018