President Trump has pulled telecommunications company ZTE out of the very same fire he put it in, as the United States reaches a deal with China. Friday’s deal echoes what we had heard previously from inside sources, with ZTE paying a significant fine and changing up its management in order to continue operations.
The change in ZTE’s upper management and board is perhaps the most crucial in this agreement, after its seven-year ban originated from its failure to punish those involved in the company’s decision to deal with Iran and North Korea, thus breaking US sanctions on sales.
Trump proudly confirmed the new deal on Twitter, along with a $1.3 billion fine and reassurance that the company will purchase US components, while blaming Senator Schumer and Obama Administration for letting “ZTE flourish with no security checks.”
Senator Schumer and Obama Administration let phone company ZTE flourish with no security checks. I closed it down then let it reopen with high level security guarantees, change of management and board, must purchase U.S. parts and pay a $1.3 Billion fine. Dems do nothing….
— Donald J. Trump (@realDonaldTrump) May 25, 2018
ZTE has already lost $3bn since the ban was imposed on April 15th, according to an inside source for Reuters, making the $1.3bn fine a small bump in the road for the company’s continued survival. “It is a great deal for #ZTE & China,” reads the telecommunications company’s response on Twitter. “#China crushes U.S. companies with no mercy & they use these telecom companies to spy & steal from us.”
Of course, not everyone is happy with the deal, as Democratic Senators Chuck Schumer and Chris Van Hollen have demonstrated their protest towards Trump’s latest actions. “If the administration goes through with this reported deal, President Trump would be helping make China great again,” said Schumer. “Would be a huge victory for President Xi, and a dramatic retreat by Pres Trump. Both parties in Congress should come together to stop this deal in its tracks.”
If the administration goes through with this reported deal, President Trump would be helping make China great again. Would be a huge victory for President Xi, and a dramatic retreat by Pres Trump. Both parties in Congress should come together to stop this deal in its tracks. https://t.co/v6qNNa2MBy
— Chuck Schumer (@SenSchumer) May 25, 2018
Rumours earlier in the week also pointed towards China eliminating tariffs on U.S. agriculture or agree to buy more farm products from the United States, however, with neither party confirming this to be the case, the minor trade war between the world’s two largest economies might continue.
KitGuru Says: At the very least, the deal with ZTE will be seen as a huge step towards burying the hatchet for now, with more agreements expected to come in the near future. It will be interesting to see how Democratic parties handle the moves, however, as tension rises between the two parties.