Senators planning to dump ZTE by overturning Trump agreement: Trump Administration had saved the phone manufacturer ZTE by lifting some of the sanctions on Chinese imports. ZTE was completely buried with its business destroyed due to the sanctions. As a result, it was saved after the Trump Administration decided to lift to some of those sanctions. However, now a senator group is planning to reverse the agreement.
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Deal details:
The deal which was announced by commerce Sec Wilbur Ross required the company to pay around $ 1 billion in fine. Also, it required the company to set aside around $ 400 million in an escrow account. These were for any future violations and fines. Also, the company will have to inculcate a compliance team. The members of the compliance team will be decided by the government of United States. Within 30 days, the company will also be required to make changes to its board of directors. Similar changes will have to be done to its executive team as well.
According to Ross, the government will be able to easily embed a proper compliance department into the company. This will not be an outside committee but rather entire department within the company. The United States government in the future will have the capability to shut down the operations of the company if it commits any further violations.
On the verge of the shutdown:
The company was planning to shut down its operation after the government enforced a seven-year ban on it to buy components from many companies from the United States. Also, the US intelligence also warned that companies like ZTE world are using their devices in order to spy on the American citizens. This was being done on the behalf of the Chinese government.
Intervention by Xi Jinping:
The ban was overturned only after the Chinese premier Xi Jinping made a plea to Donald Trump. As a result of this intervention from the top, the sanctions were overturned. At the same point in time, a group of senators is trying to overturn these concessions.
Senators trying to overturn the concessions:
The senators Chris Van Hollen and Tom Cotton are trying to pass an amendment to the National defense authorization act. This will ensure that the Commerce Department will be able to penalize ZTE. It will also undermine the changes which have been made by the White House. Also, it will prevent any government departments from buying telecommunication equipment from companies like ZTE. Also, the governments in any form cannot come to the aid of these companies in the future.
If the senators are able to overturn these concessions, the company might face a ban once again. It seems like Trump is interested more in saving jobs in China rather than America. Keyword: Senators, Trump, ZTE, China
