The ZTE – US government saga seems to have no end, and in the latest batch of news it was reported that the US might claim apenalty from the Chinese telecom equipment maker.
That penalty can be anything between $1 billion, and $1.7 billion. There are a few options being thrown around, one being the US claiming a $1bn fine, with an additional $400 million being put in escrow.
U.S. Commerce Secretary Wilbur Ross is heading to Beijing this weekend for trade talks, which is probably when we will learn more about the deal.
ZTE almost went out of business when the US government banned the company from doing business with the Chinese firm. The ban was put in place after it was discovered that ZTE had violated an agreement it had with the US and exported its products to countries under US embargo – North Korea and Iran.
Following the ban, ZTE basically had to close shop, while the Chinese government went into negotiations with its US counterparts. Initial agreement included more imports of US agricultural goods into China, as well as replacing people in charge of ZTE. However, the deal is not yet formalised.
US president Donald Trump also suggested financial help to ZTE, which was met with discontent from both sides, Democrats and the Republicans.
Representatives from the Commerce Department and ZTE are yet to comment on the latest news.
Image Credit: Flickr / Kārlis Dambrāns