ZTE Could Get A Reprive, But It Will Cost Them More Than $1.5 Billion
Dumped by Telstra Chinese phone maker ZTE could be thrown a lifeline by the US Government bit it will cost them more than $1.5 Billion.
President Donald Trump has said he may lift a crippling export ban on Chinese technology firm ZTE in exchange for a US$1.3 Billion dollar fine which some say the US Government will end up paying.
Mr Trump said the current penalty, which led ZTE to halt major operations, has hurt US firms that sell to it.
Some Democrats such as Senator Chuck Schumer called the proposal “a wet noodle”.
Some Republicans have referred his comments to the past actions of the Obama Democratic led Government.
He later added he is not satisfied with the current state of trade talks with China.
“I think that they’re a start, but we need something,” he said.
The export ban is punishment for the ZTE’s failure to comply with a settlement reached over its violations of sanctions against North Korea and Iran.
In Australia Alcatel a TCL owned Company is one the Companies who are tipped to get the nod to replace the Telstra house brand smartphones that are made by ZTE.
The president outlined the possible alternative while speaking to reporters in Washington on Tuesday at a meeting with the president of South Korea.
In addition to the fine, he envisions new management, a new board of directors, and requirements for significant purchases of US products, he said.