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Acacia, Lumentum Gain As US To Lift Ban On ZTE Component Sales

Acacia, Lumentum Gain As US To Lift Ban On ZTE Component Sales

Ross also said that a compliance team picked by the US will be embedded at ZTE and that the Chinese company must change its board and executive team in 30 days.

Trump barged into the case last month by tweeting that he was working with President Xi Jinping to put ZTE "back in business, fast" and save tens of thousands of Chinese jobs. The company relies on US -made components for many of its products, and also sells many of those products to USA customers.

The government will hold $400 million of ZTE's money in escrow as a hedge against future violations by the company, which previous year settled criminal and civil charges in connection with its violation of USA sanctions on Iran and North Korea.

US Secretary of State for Commerce Wilbur Ross told CNBC: "If they do violate it again, in addition to the billion dollars they are paying us up front, we had them put $400m in escrow". The preliminary agreement was signed by ZTE over the weekend, but the Chinese company has yet to sign the amended settlement agreement. Its global smartphone market share is about 11 percent, and its total revenue was about $92 billion in 2017.

Senate Majority Leader Charles E. Schumer called for Congress to reverse the decision, which is unlikely. But why is the US government so concerned with what ZTE makes and sells? These were chips and components made in America that ZTE uses to make its radio equipment. It must change its board of directors and executive team in the next 30 days. It paid $890 million in fines.

Facebook privacy bug 'affects 14 million users'
A Facebook booth is seen at the China International Big Data Industry Expo in Guiyang, Guizhou province, China, on May 27, 2018. That way, users can reset a post that was inadvertently set to public back to being shared just with friends if they would like.

Eric Hirschhorn, a former US undersecretary of commerce who had been involved in the ZTE case, said "the government is merely setting a price for doing business instead of giving them the punishment they deserve". "The Chinese public was up in arms because they believed the US was destroying ZTE".

Finally, while no agreement has been officially inked, the sources in the Reuters article did say ZTE has finished all of its signatures and that the usa just needs to finalize the deal.

Since then, President Trump and his friends have stepped in to help ZTE stay alive, even though there is bipartisan agreement that the United States shouldn't. However, some sources who corresponded with me say that the Chinese government has purposely held up the acquisition of NXP Semiconductors by Qualcomm while it negotiates a more positive outcome for ZTE. Overall this an unprecedented agreement with the BIS in both the size of the fines and the overall scope of the compliance monitoring. "Export control and sanctions laws should not be negotiable, because fidelity to the rule of law is a key part of what distinguishes the US from a country like China that is ruled by a Communist dictatorship". Building and maintaining a 5G network in the US may create 3 million jobs and provide a $500 billion boost to GDP, according to a 2016 Accenture report.

The Chinese Commerce Ministry said Thursday that some progress was made in talks that ended last weekend.

ZTE supplier Oclaro Inc was up 1.3 percent while Acacia Communications Inc was down 0.6 percent.


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