ZTE’s future is in Trump’s hands. Scary, huh?
TROUBLED SMARTPHONE maker ZTE may have a big and bitter pill to swallow to save their company.
The company was banned from trading in the USA for seven years, for alleged security breaches, and veiled references to facilitating spying by the Chinese government.
The move effectively ended the company which has ceased operations worldwide whilst it concentrates on appealing or fighting back.
President Trump has already suggested that there is a deal to be done (surprise surprise) but it looks like its not a very favourable one for ZTE.
The latest word is that Trump wants a complete management overhaul at ZTE and a $1.3bn ‘fine’ paid to lift the restrictions which prevent the company from buying parts made by American companies.
As if that wasn’t enough, Congress appears to be united against Trump on this – both sides of the house have expressed the wish that no deal is done and that the ZTE ban remains in place.
In return for ZTE’s return to grace, the US government would back down on tariffs regarding agriculture and while China would agree to buy more milk and meat and such from the US. It has led to some Senators questioning why Trump is willing to trade national security for butter.
So as it stands, ZTE is both dead and alive, for now.
Yes, it’s Schrodinger’s OEM.
And it’s not just China that will suffer – if the sanctions remain it will affect the US companies who work with ZTE, too.
In reality, the whole ZTE saga is a pawn in a much bigger game involving China, the US, trade wars, and surprise, surprise – North Korea.
Trump has already met President Xi of China for trade talks but has been characteristically unsatisfied with the results.
Meanwhile, the Senate has voted overwhelmingly to stop Trump reversing the sanctions unilaterally, with questions remaining about exactly what Trump’s end game is and even questioning his understanding of the ‘big picture’ on a complicated set of issues with an emerging superpower. µ
Source : Inquirer