ZTE could soon see itself back in business; at least if US President Donald Trump gets his way. According to sources, the company is being offered an alternative deal to the current sanctions that prevent it from buying anything from US companies.
The US Department of Commerce is saying that ZTE could be allowed to operate as normal in the US. In exchange for heavy fines, hiring American compliance officers, and changing its management team. Which is something that was already tried before the company was caught violating international sanctions for the second time.
Not everyone is happy that ZTE is being thrown a lifeline, with the US House of Representatives having passed a bill that would make it more difficult to save the company. Representatives believe that the issue is a matter of national security, and that allowing ZTE to continue to operate would weaken law enforcement policies.
President Trump is eager to lift penalties on ZTE in order to push a trade deal through with China. Naturally, the Chinese are using the ZTE issue as a major bargaining piece; and it appears to have successfully pushed American negotiators into a favourable position.
It’s still difficult to say if ZTE will come back. Having already ceased all operations when the seven year ban on US products was originally announced. Since then, it has cost China thousands of jobs and could have wider repercussions on the Chinese economy.
[Source: The New York Times]