Wilbur Ross says Trump administration has reached "definitive agreement" with ZTE

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Wilbur Ross says Trump administration has reached

The Commerce Department blocked ZTE's access to us suppliers in April, saying the company violated a 2017 sanctions settlement related to trading with Iran and North Korea and then lied about the violations.

Ross said going forward, the deal imposes the "most strict" compliance on ZTE. The two countries have threatened to impose tariffs on up to $200 billion worth of each other's products in a dispute over China's tactics to supplant US technological supremacy, including demands that USA companies hand over trade secrets in exchange for access to the Chinese market.

Said "violator" needs to pay a penalty of a whopping $1 billion up front, also being required to put an additional $400 million in escrow as collateral for any prospective future breaches of trade laws.

To date, total penalties have already reached about $2.29 billion.

Under this new agreement, ZTE will retain compliance contractor in addition to the three-year court-appointed monitor imposed by the plea agreement. The United States has reached a deal with the Chinese telecommunications giant that includes a $1 billion fine, according to Commerce Secretary Wilbur Ross.

The report says that ZTE has signed an agreement in principle drawn up by the United States, but it has not signed anything definitive.

"This is a pretty strict settlement ..."

In case you haven't been following along, ZTE previously agreed to certain conditions back in March 2017 after they were found to have ignored USA sanctions and shipped products to both North Korea and Iran.

William Reinsch, a trade expert at the Center for Strategic and International Studies, said the ZTE offer suggested Beijing could have concessions to Trump on trade but it remained unclear whether these were of equal value.

Chinese telecom giant ZTE said its major operations had ceased following last month's USA ban on American sales of critical technology to the company.

The Congress members who introduced the bill, as well as the intelligence agencies that flagged ZTE and Huawei hardware as risky, believe that Chinese devices could contain spyware and backdoors that could be a threat to national security. But Trump ignored the complaints, pushing Ross to settle the dispute. Republican Senators Marco Rubio and Susan Collins are co-sponsors, as are Democrats Richard Blumenthal and Bill Nelson.

ZTE had been crippled by American sanctions, partly because it relies on American-made components to build its phones and cellular equipment. Thanks to the White House, specifically the President Trump, for allowing ZTE to clean up its act.

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