Commerce Secretary says U.S. has deal with China to resurrect ZTE

China's ZTE said it ceased major operations last month due to the ban

China's ZTE said it ceased major operations last month due to the ban

Trump barged into the ZTE case last month by tweeting that he was working with the Chinese president, Xi Jinping, to put ZTE "back in business, fast" and save tens of thousands of Chinese jobs.

Shares of Acacia Communications (ACIA), Lumentum Holdings (LITE) and other optical-component makers climbed Thursday after U.S. Commerce Secretary Wilbur Ross said the Trump administration has hammered out a deal to lift sanctions on Chinese telecom gear maker ZTE. This means that they could be fined up to $1.7 billion in total.

In April, the commerce department barred ZTE from importing American components for seven years, having concluded that it deceived U.S. regulators after it settled charges last year of sanctions violations. Commerce Department spokesman James Rockas told Reuters on Tuesday that "no definitive agreement has been signed by both parties".

Following the ban on selling USA -made hardware (and potentially software) to ZTE earlier this year, it appears that the company may have reached a compromise with the us government, according to Reuters.

"Huawei and ZTE have extensive ties with the Chinese Community Party, as well as a track record of doing business with rogue regimes like North Korea and Iran", Cotton said in a statement. Marco Rubio (R-Florida) on Thursday.

There are also some political ramifications to this deal - which are outside the scope of AnandTech's purview - but as the New York Times notes, many see this as part of a larger peace offering in ensuring a new trade deal between the United States and China.

ZTE also is required to change its board of directors and executive team within 30 days. Chinese telecom firms like ZTE and Huawei are suspected of having ties to the Chinese military, and their products already are banned on many USA military bases.

ZTE's resuscitation with USA help has met strong resistance in Congress, where both Democrats and Trump's fellow Republicans have accused him of bowing to pressure from Beijing to help a company that has been labelled a threat to U.S. national security.

Commerce Secretary Wilbur Ross announced an agreement with ZTE early Thursday that would impose additional financial penalties on and install USA -approved compliance officials within ZTE.

The company was found to have shipped its sophisticated telecommunications equipment to both nations and to have repeatedly lied to US investigators about its actions. "I hope it means something good to us, but we are really focused more on our individual application", Mollenkopf told a corporate governance conference in NY.

One possibility is that China will finally approve Qualcomm's (QCOM) $44 billion purchase of the Dutch company NXP Semiconductors (NXPI), said Samm Sacks, a senior fellow in the Technology Policy Program at the Center for Strategic and International Studies.

Senator Ron Wyden of OR, a Democrat and ranking member on the Finance Committee with jurisdiction over trade, and Senate Minority Leader Chuck Schumer of NY called on Congress to reverse the agreement.

"ZTE is a state-controlled telecommunications company that poses significant espionage risks, which this agreement appears to do little to address", U.S. Senator Mark Warner, the top Democrat on the Intelligence Committee, said in a statement. USA goods exported to China a year ago totaled $130 billion while Chinese imports to the US totaled $506 billion.

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