President Trump says ZTE has to pay $1.3 billion fine to continue business in America

President Trump has tweeted that the Chinese company ZTE will have to pay a $1.3 billion fine and purchase US parts before it reopens for business in America. The President also said that the Chinese company will have to give high level security guarantees and change its management and board composition.

https://twitter.com/realDonaldTrump/status/1000151354701213696

The American government had earlier, in the year, issued an order banning U.S. partners from selling components to ZTE in response to it flouting trade bans in Iran and North Korea. The U.S. Department of Commerce announced a seven-year export restriction for the company.

Thereafter the Chinese smartphone/telecom manufacturer announced that it had ceased its main business operations as it attempts to figure out the best way forward.  ZTE estimated that the ban would cost them losses of at least $3.1 billion.

Trump’s deal with the Chinese company is seen by many to be controversial as not many Americans agree with the US administration for even giving the company a chance to continue to do business in America after its violation.

And even taking into consideration that in February this year, the FBI had warned that “it was deeply concerned about the risks of allowing a company or entity that is beholden to foreign governments that don’t share our values to gain positions of power inside our telecommunications networks.”

Anyways, it is part of “the art of the deal”