ZTE has reached a deal to have U.S. sanctions lifted

ZTE has reached a deal to have U.S. sanctions lifted

Senate Minority Leader Chuck Schumer said Tuesday that President Donald Trump has "put China, not the United States, first" if reports were true that Chinese company ZTE Corp. signed an agreement that would lift a Commerce Department ban on buying from usa suppliers.

The preliminary deal includes a $US1 billion fine against ZTE plus $US400 million in escrow in the event of future violations, sources said, adding that the terms were in line with Reuters reporting on the United States demands on Friday.

Commerce Secretary Wilbur Ross banned USA companies from doing business with ZTE in April, after his agency learned that ZTE had not followed through on commitments made back in 2016. ZTE relies on US parts and the ban also hurt ZTE's USA suppliers. A ZTE spokesman couldn't be reached for comment.

ZTE has become a critical part of the broader discussions between China and the USA, the two largest economies in the world, over trade tensions and whether the two countries can prevent a trade war that could involve billions of dollars' worth of tariffs.

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Reuters says ZTE has now reached a preliminary agreement that will see the sanctions lifted. It appears that ZTE could be "back in business" after being consigned to the technological wasteland for breaking last year's deal concerning illegal telecom shipments to Iran and North Korea.

US President Donald Trump planned to meet with his trade advisers on Tuesday to discuss China's offer to import an extra $70 billion (roughly Rs. 4.7 lakh crores) of American goods over a year as a way to defuse a potential trade war between the world's two largest economies.

ZTE will also be required to replace its management board within 30 days. Senate Minority Leader Chuck Schumer told Reuters he thought Congress should immediately take action to try to block the deal.

Sources told the outlet that ZTE signed a US "agreement in principle" over the weekend, but had not yet signed an amended version. It has a small but rising share of the smartphone business in the US.

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