U.S. Department of Commerce Reports to Congress on Revocation of ZTE Injunction, ZTE Still Needs to Pay a Heavy Fine

[The US Department of Commerce reports to Congress on revoking the ban on ZTE, and ZTE still needs to pay a large fine] According to reports of The New York Times and Reuters, President Donald Trump’s government is informing Congress that it has reached an agreement and will “pass "China Telecom ZTE Corporation.

The "New York Times" report quoted informed sources as saying that as part of the transaction, ZTE will compensate economic losses, change its management and hire the US Compliance Officer. The newspaper said that the United States will cancel the company’s ban on the purchase of US products under the agreement. It is unclear how firm the reported transaction is at this point.

The Outline of the Times’ report seems to be consistent with some of Trump’s steps that could help ZTE resume its business. On Tuesday, President Trump stated that he envisages "a huge fine of more than $1 billion" and a new "management, new board and very very strict security rules." He added that he hopes ZTE will "acquire most of the parts and equipment from U.S. companies."

The restart of the ZTE agreement may help the key trade negotiations between the United States and China. ZTE once said that the US penalties will weaken its business. Trump said that ZTE’s negotiations are part of a broader negotiation on China’s suspected trade violations, but senior consultants have listed ZTE as a “law enforcement” issue. Washington and Beijing are trying to reach an agreement to avoid potentially damaging tariffs.

Trump once said that he agreed to the Chinese president and agreed to help ZTE become the main supplier of smart phones in the U.S. market.

The prospect of reaching an agreement with the telephone manufacturer has triggered criticism from both parties on Capitol Hill. Many legislators believe that any transaction will damage national security because the U.S. government is punishing ZTE for violating sanctions against Iran and North Korea. Some lawmakers also believe that ZTE's equipment poses cyber security risks.

Earlier this week, the Senate Banking Commission overwhelmingly passed an amendment proposed by Senator Chris Van Hollen to limit Trump’s ability to cancel ZTE’s penalties. Following Friday’s “New York Times” report, Van Hollen told NBC News: “The two parties are strongly opposed to the president’s idea of ​​national security considerations.”

He said: "By putting ZTE on one horse, it will undermine the maximum sanctions we impose on North Korea."

In a statement, the Senate Minority Leader Chuck Shu defaulted that the deal would help "make China stronger again" and "will not protect the US economy or national security." He said: "The Congress Both sides should stop the deal together.”

Nancy Pelosi, the minority leader of the House of Representatives, called this report an agreement that "shocked the betrayal of the American people." In a statement, she claimed that "the Americans deserve a better president than they are eager to betray the American people and national security in order to realize their personal interests."

Senator Marco Rubio of Florida once frequently criticized Trump for rescuing ZTE, saying that this agreement is "important" for ZTE and China. "Now Congress needs to take action," he said on Twitter.

White House Press Secretary Sarah Huckabee Sanders will not confirm any possible terms of the deal. She said that the Trump administration wants to ensure that ZTE is “held accountable”.

On May 25, United States Eastern Time, a senior aide of the US Congressman told reporters that the U.S. Department of Commerce informed the U.S. Congress about the lifting of the sales ban on ZTE Corporation. The U.S. Department of Commerce intends to lift the ban on U.S. companies selling parts and software products to Zhongxing.

The New York Times stated that according to the agreement reached by the US Department of Commerce, ZTE will pay a huge fine and set up US compliance officials within the company to supervise whether ZTE complies with U.S. regulations as a substitute for severe sanctions.

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