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MAY 27, 2018
Good or bad deal - time will tell. The Trump administration has told Congress that it's reached a deal that would allow Chinese telecommunications giant ZTE Corp. to stay in business, a source familiar with the talks who spoke on condition of anonymity to discuss a confidential matter said Friday. A resolution of the ZTE case could clear the way for the United States to make progress in its high-stakes trade talks with China. But news of the agreement drew immediate fire on Capitol Hill.
Under the agreement, ZTE would oust its management
team, hire American compliance officers and pay a fine. The fine would
come on top of the roughly $1 billion ZTE has already paid for selling
equipment to North Korea and Iran in violation of U.S. sanctions. In return,
the Commerce Department would lift a seven-year ban on ZTE's purchase of
components that the Chinese firm depends on from U.S. companies. The ban,
imposed earlier this month, threatened to put ZTE out of business.
The Commerce Department did not immediately respond to a call seeking confirmation of the agreement. On Capitol Hill, one senior congressional source said leaders have not yet received formal notification.
ZTE will not be a problem - they are a Chinese
firm designed to spy on the US.