The White House and the Commerce Department have told Congress that the Trump Administration has struck a deal that will allow Chinese telecom giant ZTE to remain in business.
Reports indicate that the deal will ease sanctions and overturn a denial order that previously forbid ZTE from buying products from American companies. In exchange, ZTE will pay a fine and hire an American “compliance team” to put the company under new management.
The news comes after President Trump spent the last few weeks encouraging the government to reconsider America’s economic campaign against the company as a favor to Chinese President Xi Jinping. While the development might avert a possible trade war with China, a bipartisan group of congressional lawmakers hoped sanctions wouldn’t be taken off ZTE for a variety of reasons.
One reason frequently cited among ZTE’s critics is that they violated United States sanctions by doing business with Iran and North Korea. Another concern is that by resuming business with the U.S. and regaining access to technology, the Chinese government might take advantage of it and become more competitive with American capabilities. Thirdly, the Pentagon has warned against the use of ZTE tech because their devices might be exploited for spying, which poses a security risk.
Watch above, via Fox Business.
[Image via screengrab]
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