Tuesday, 25 September 2018

ZTE avoids further punishment as Trump signs $716bn defence bill

By Chris Kelly, Total Telecom
Tuesday 14 August 18

Some US politicians called for the bill to include legislation which would have blocked ZTE from a slew of US telecoms projects

US President Donald Trump has signed a $716 billion defence bill, that further relaxes punitive measures taken against Chinese tech firm ZTE. While ZTE will still be precluded from bidding on any telecommunications contracts relating to the US military or national security infrastructure…

US President Donald Trump has signed a $716 billion defence bill, that further relaxes punitive measures taken against Chinese tech firm ZTE.

While ZTE will still be precluded from bidding on any telecommunications contracts relating to the US military or national security infrastructure, no further sanctions will be imposed. Some US politicians had called on the government to extend the "exclusion zone" to include a whole range of domestic US projects. However, President Trump has resisted such calls and the new bill makes no such stipulations.   

ZTE was brought to the brink earlier this year by a US banning order that was imposed after the Chinese firm failed to sack employees who were involved in shipping US equipment to clients in North Korea and Iran.

The banning order prevented ZTE from doing business with any US based firm, causing havoc in the company's production supply chain. ZTE ceased trading in May and looked consigned to the scrap heap, before an eleventh-hour olive branch from President Trump breathed new life into the company.

ZTE was allowed to continue trading with US businesses on the condition that it paid a $1 billion fine, placed $400 million aside in escrow against future transgressions and agreed to a US approved restructuring of its board of directors. 

Also in the news: 

ZTE Italia ready for business

US lifts ban on ZTE

ZTE shares plummet as it begins its long hard road to recovery

 

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry