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U.S. government may have a deal to save ZTE, but at significant cost

The ongoing saga between Chinese smartphone manufacturer ZTE and the United States government has a new development. Following the announcement that it was working to get ZTE back in business "fast", the administration led by Donald Trump has announced that it has a deal to save the company.

The deal proposed by the U.S. Department of Commerce would allow ZTE to receive American exports, but in exchange, the Chinese company would have to pay a "substantial" fine, make changes to its management team, and hire officers dedicated to American compliance to ensure the company fixes its behavior.

ZTE was initially banned from buying products exported by American technology companies due to findings showing that it had been selling American technology to Iran and North Korea. As a result of the ban, the company said it would be shutting down the majority of its operations. It remains to be seen if the asking price to stay in business is worth it for the smartphone maker, as the deal hasn't gone through yet.

Even if ZTE concedes, the deal will likely face opposition in the United States as well. As reported by The New York Times, a bill by the House of Representatives and an amendment by the Senate Banking Committee have been approved to prevent the U.S. government from lifting the restrictions imposed on ZTE. Additionally, a bipartisan group of senators has warned the administration not to “compromise lawful U.S. enforcement actions against serial and pre-meditated violators of U.S. law, such as ZTE.".

Source: New York Times via Engadget

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