ZTE pays $1 billion fine to US government
In addition to the fine, the company has agreed to put 400 million dollars in escrow to guarantee their good behavior..despite this, Congress remains united in its desire to keep the sanctions in place..and effectively cripple the Chinese company.
"China's ZTE, which the US government has accused of repeated sanctions violations, has paid a $1 billion fine, a US Commerce Department official said Friday.
The payment comes days after President Donald Trump tried to persuade two dozen lawmakers — mostly Republicans — that the fine and the assignment of an American monitoring team would be sufficient punishment for ZTE.
ZTE will also put $400 million in an escrow account in the coming days, according to the Commerce official. That money is meant to give ZTE an incentive to comply with trade rules going forward.
The White House and Congress have been at odds over the company, which makes smartphones and is China's second largest manufacturer of telecom equipment.
Some lawmakers want stronger penalties imposed on ZTE, which they see as a security threat. Trump wants to keep the company alive as a bargaining chip in the broader trade spat with China.
Related: ZTE stock drops 25% after US Senate pushes to keep ban
This week Trump met with lawmakers at the White House to discuss a provision in defense policy legislation that would reimpose a ban on ZTE doing business with its US suppliers. Doing so would effectively shut down the company, which employs around 75,000 people.
Republicans and Democrats have been united on attempting to block Trump's deal to lift sanctions on ZTE.
Trump told reporters "we're working on it" when asked about his efforts to sway lawmakers who object to the deal."
In addition to the fine, the company has agreed to put 400 million dollars in escrow to guarantee their good behavior..despite this, Congress remains united in its desire to keep the sanctions in place..and effectively cripple the Chinese company.
"China's ZTE, which the US government has accused of repeated sanctions violations, has paid a $1 billion fine, a US Commerce Department official said Friday.
The payment comes days after President Donald Trump tried to persuade two dozen lawmakers — mostly Republicans — that the fine and the assignment of an American monitoring team would be sufficient punishment for ZTE.
ZTE will also put $400 million in an escrow account in the coming days, according to the Commerce official. That money is meant to give ZTE an incentive to comply with trade rules going forward.
The White House and Congress have been at odds over the company, which makes smartphones and is China's second largest manufacturer of telecom equipment.
Some lawmakers want stronger penalties imposed on ZTE, which they see as a security threat. Trump wants to keep the company alive as a bargaining chip in the broader trade spat with China.
Related: ZTE stock drops 25% after US Senate pushes to keep ban
This week Trump met with lawmakers at the White House to discuss a provision in defense policy legislation that would reimpose a ban on ZTE doing business with its US suppliers. Doing so would effectively shut down the company, which employs around 75,000 people.
Republicans and Democrats have been united on attempting to block Trump's deal to lift sanctions on ZTE.
Trump told reporters "we're working on it" when asked about his efforts to sway lawmakers who object to the deal."
