Donald Trump lays out terms of ZTE reprieve: $1.3 billion, monitoring

US President Donald Trump has confirmed some of the key details of the changes the Commerce Department has made to its disciplinary ledger against Chinese tech manufacturer ZTE.

It was earlier reported that the department had communicated to Congress that it would remove a 7-year imports ban on the company if it paid $1.3 billion, come under compliance monitoring by an American firm and switch out members of its management team and board.

In doing so, Trump also took a swipe at Democrats and President Barack Obama in the context of trade with China. Negotiations have been happening over the past few months on agricultural and technological topics after the president first spiked tariffs on steel made from all foreign countries. It is said that China has brought up reprieve for ZTE as one of its talking points in the talks.

Trump argues that even as ZTE was under investigation for trade sanction violations dating to 2012, the company was allowed to “flourish.”

ZTE has yet to respond to the recent developments. It is not clear if the company is working to comply with the new terms. The OEM projects to lose more than $3.1 billion from its stoppage of operations in reaction to the ban.

Trump had first suggested providing some relief for ZTE through a tweet.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.