U.S. reached deal to save Chinese telecom ZTE Corp

Published on: 29 May, 2018

Lawmakers were told by the Trump administration that the U.S. government reached a deal to bring Chinese telecommunications company ZTE Corp back into business, according to Reuters.

The deal involves ZTE paying a huge fine, placing American compliance officers at the company and changing its management team for the U.S. to remove its order preventing ZTE from buying U.S. products.

Acacia Communications Inc and Oclaro Inc, some US suppliers for ZTE, have both started to trade higher raising 4.6% and 2.8% respectively.

ZTE violated laws by selling American technology to Iran and North Korea against sanctions set by the US against the countries. The Justice Department called for the company to pay upwards of $1.2 billion and to penalize all the workers involved in the largest fine for a sanctions case.

The Commerce Department reported that ZTE instead paid full bonuses to the employees who sold the technology illegally and failed to issue letters of reprimand in April, which caused the US to place a seven-year suspension from allowing ZTE to sell US technology.

ZTE is estimating about a loss of $3.1 billion (20 billion yuan) from this US technology suspension. US companies estimated that they provided 25% to 30% of components in ZTE's equipment.

Ratings

Ratings
  • 2557Views
  • 0Comments

Recommend to Friends

  • facebook
  • Twitter
  • google plus
  • pinterest
  • Digg
  • stumbleupon
  • Reddit
  • linkedin

Andy Liao

Email: Andy@financialinsiders.com

@Newsletter

Sign Up for Weekly Updates

Opt-into our eNewsletter NOW! For the Latest Trending Financial News Topics in Cannabis, Tech, Biotechs, Precious Metals, Energy, Renewable Energy and much more!

Related Posts

07 Jun, 2017 3611
28 Jun, 2017 2810
03 Jul, 2017 2628
09 Aug, 2017 2878

Comments

There is no comment on this article