There’s A Deal Between The US & ZTE… Which Is A Slap On The Wrist To ZTE

Well, it seems that ZTE may live another day thanks to a deal that they cut with the US. Here’s what they have apparently agreed to:

China’s ZTE will pay a $1 billion penalty and will embed a U.S. appointed compliance team, terms that are similar to those President Trump discussed last month when he revealed that Chinese leaders had asked him to look into the matter. “At about 6 a.m. this morning, we executed a definitive agreement with ZTE,” Commerce Secretary Wilbur Ross told CNBC in an interview Thursday. “And that brings to a conclusion this phase of the development with them.” Trump asked the Commerce Department to investigate the restrictions on ZTE in April following a request from Chinese President Xi Jinping. Commerce imposed a seven-year ban after the company sold American-made products to Iran, a violation of U.S. sanctions.

In my humble opinion, ZTE really won’t suffer. ZTE will easily recoup the $1 billion in penalties just by the fact that its share price will certainly jump up with this news alone. So they come out the winners in all of this. And the US would have missed a glorious opportunity to send a message to those who wanted to copy and paste ZTE’s behaviour.

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One Response to “There’s A Deal Between The US & ZTE… Which Is A Slap On The Wrist To ZTE”

  1. […] that deal that President Trump came up with to give Chinese telecom ZTE a slap on the wrist? It didn’t […]

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