THE BALLAD of ZTE is nearing an end, as the firm has signed an agreement to resume business in the US.
The Department of Commerce (DoC) took to Twitter to announce that a settlement with ZTE is about to be finalised, which will lift the US trade ban on the company and allow it to resume business with American-based firms, such as Dolby, Google and Qualcomm.
The DoC said that, once ZTE had made a $400m (£303m) security payment, an order to lift the ban will be issued.
— U.S. Commerce Dept. (@CommerceGov) July 11, 2018
“Today’s announcement marks the beginning of the end of this long-running saga,” said Washington attorney Douglas Jacobson, who represents ZTE suppliers, according to Reuters.
ZTE was slapped with a seven-year US trade ban in April this year after it was caught illegally shipping US technology to Iran and North Korea and failed to remove a number of senior staff over the incident, as promised to the US gov last year, as a result.
The ban meant ZTE could no longer do business with any US-based manufacturers, which had a big impact on the company and brought production lines to a halt in May as components dried up.
It also meant the Chinese firm was unable to, er, fix its toilets, as it was unable to source the parts in order to carry out the repairs.
The deal to save ZTE was forged by Donald Trump himself, causing a bipartisan group of Senators to criticise it heavily – both for the way it was arranged and for the fact that the deal doesn’t actually give any significant reassurance about security.
Many on both sides of the divide are genuinely concerned that backdoors and listening devices represent a genuine possibility, with gathered information being fed back to Chinese government agencies. µ
Source : Inquirer