The Trump administration has reached a deal with Chinese telecom ZTE to lift economic sanctions on the firm, a move likely to frustrate much of Congress, two sources familiar with the arrangement have confirmed to ABC.
However, the House and Senate have been advancing legislation that would tie the hands of the president in dealmaking with ZTE, which is under a crippling USA ban because it did business with Iran and North Korea in violation of sanctions.
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. Trump has negotiated a $1.3 billion fine with the Chinese President over a phone call, as per Fox News.
The deal, communicated to officials on Capitol Hill by the Commerce Department, requires ZTE to pay a substantial fine, place American compliance officers at the company and change its management team, the aide said. Additionally, a bipartisan group of senators has warned the administration not to "compromise lawful US enforcement actions against serial and pre-meditated violators of USA law, such as ZTE.".
The White House did not immediately confirm news of the latest deal.
Kingsview Asset Management's Scott Martin on reports a deal was reached to save China's ZTE.
Lawmakers have warned the administration not to go easy on a company that brazenly violated US sanctions against two rogue nations that were pursuing nuclear weapons production.
Rubio added that Congress should act to stop Trump from letting ZTE get back into business.
The ban was placed on ZTE after its management failed to comply with punishments imposed on them by the United States following around 40 of its employees selling "hundreds of millions of [US] dollars'" worth of routers, microprocessors and servers to Iranian entities in violation of the US's Export Administration Act of 1979.
The telecom company has become entwined in high-stakes trade talks between the US and China. US -traded shares of NXP Semiconductors NV rose 4.7 percent after the announcement, as signs of better U.S. Would be a huge victory for President Xi, and a dramatic retreat by Pres Trump.
Ross is scheduled to travel to Beijing next week to accelerate talks, particularly focused on securing a commitment from China to purchase more US goods.
"ZTE, the large Chinese phone company, buys a big percentage of individual parts from USA companies". "This is particularly critical when the violators are state-owned and -influenced, part and parcel of China's policies and practices created to strengthen its own national security innovation base, and essential tools of efforts to spread China's influence in other countries that pose national security threats to the United States".
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