By Karen Freifeld

The United States said on Wednesday that it signed an agreement with ZTE<\/a> Corp that paves the way for the Chinese tech company to resume operations after a nearly three-month ban on doing business with American suppliers.

The ban on
China<\/a>'s No. 2 telecommunications equipment maker will be removed once the company deposits $400 million in an escrow account, the U.S. Commerce Department said in a statement announcing that an escrow agreement had been signed.

The ban, which was imposed in April and caused ZTE to cease major operations, has been a source of friction between Washington and Beijing, which are engaged in an escalating trade dispute.

ZTE did not immediately respond to a request for comment.

\"Today's announcement marks the beginning of the end of this long-running saga,\" said Washington attorney Douglas Jacobson, who represents ZTE suppliers.

The escrow agreement is part of a $1.4 billion settlement ZTE reached with the Commerce Department last month to regain access to U.S. suppliers, whose components it relies on for its smartphones and networking gear.

The ban was imposed after ZTE broke an agreement reached after ZTE pleaded guilty in U.S. federal court last year for illegally shipping U.S. goods and technology to Iran, in violation of U.S. sanctions.

The new settlement includes a $1 billion penalty that ZTE paid to the U.S. Treasury last month and the $400 million in the escrow account that the United States could seize if ZTE violates the latest settlement. The $1 billion penalty is in addition to nearly $900 million ZTE paid last year.

Once the ban is lifted, ZTE, which employs around 80,000 people, is expected to restart major operations. The reprieve for ZTE coincides with a new Trump administration threat of 10 percent tariffs on $200 billion of Chinese goods.

In its statement, the Commerce Department said the ZTE action is a law enforcement matter unrelated to broader discussions of trade policy.

\"The ZTE settlement represents the toughest penalty and strictest compliance regime the department has ever imposed in such a case,\" the Commerce Department said.

U.S. President Donald Trump tweeted in May that he had closed down ZTE and then let it reopen, although no agreement to lift the ban had yet been reached. He said he was working with Chinese President Xi Jinping to give ZTE \"a way to get back into business, fast.\" ZTE had said the ban threatened its survival.

White House trade adviser Peter Navarro said last month that Trump decided to allow ZTE to again buy U.S. parts and components as a personal favor to Xi to show good will for bigger efforts.

U.S. suppliers have been anxious to resume business since U.S. Commerce Secretary Wilbur Ross announced the settlement on June 7. ZTE paid over 200 U.S. companies more than $2.3 billion in 2017, including Qualcomm Inc, Intel Corp, Broadcom Inc and Texas Instruments Inc.

Shares of smaller U.S. suppliers, which are more dependent on ZTE, pared losses after the news, including optical component makers Acacia Communications Inc, Oclaro Inc and Lumentum Holdings Inc.

ZTE's shares were suspended for almost two months after the ban was imposed and have lost about half their value.

The company last week received a limited one-month reprieve from the Commerce Department to maintain existing networks and equipment.

Under the new settlement, ZTE was required to change its board and management within 30 days. It also will operate for the next 10 years under a suspended ban. The current ban could have lasted up to seven years.

In addition, the company must hire an outside compliance monitor selected by the Commerce Department. The department missed a 30-day deadline to choose the monitor, but said on Wednesday the timetable was adjusted to conduct \"due diligence.\"

A controversial monitor appointed to a three-year term by a federal judge in Texas as part of last year's guilty plea already is in place.

ZTE also agreed to allow the U.S. government unfettered site visits to verify U.S. components are being used as claimed by ZTE, and to post calculations of the U.S. components in its products on its website in Chinese and English.

Members of the U.S. Senate last month urged Trump to reconsider the settlement, saying that ZTE posed \"a significant threat\" to national security.

The Senate paved the way for a showdown with Trump over the issue last month, when it passed an annual defense policy bill including an amendment attempting to reverse the deal. The measure could still be killed when Senate and House of Representatives meet in the coming weeks to forge a compromise version of the bill.

Chuck Schumer, the Senate's top Democrat, on Wednesday called the ZTE deal \"awful\" and said it would \"undermine our national and economic security.\" He said he hopes his Republican colleagues in the House and Senate will \"maintain the Senate's strong language in the defense bill.\"

Reuters revealed on June 5 that ZTE had signed a preliminary agreement with the Commerce Department, along with the fine and other terms. It also broke news of the ban in April.

A U.S. investigation into ZTE was launched after Reuters reported in 2012 the company had signed contracts to ship hardware and software worth millions of dollars to Iran from some of the best-known U.S. technology companies. (https:\/\/reut.rs\/2GbpCmO)

(Reporting by Karen Freifeld; editing by Lisa Shumaker and Leslie Adler)

<\/p><\/body>","next_sibling":[{"msid":64957614,"title":"Chipmaker Broadcom inks $19 billion deal to buy software company CA","entity_type":"ARTICLE","link":"\/news\/chipmaker-broadcom-inks-19-billion-deal-to-buy-software-company-ca\/64957614","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":64957655,"entity_type":"ARTICLE","title":"China's ZTE clears hurdle to lifting U.S. ban","synopsis":"The United States said on Wednesday that it signed an agreement with ZTE Corp that paves the way for the Chinese tech company to resume operations after a nearly three-month ban on doing business with American suppliers.","titleseo":"telecomnews\/chinas-zte-clears-hurdle-to-lifting-u-s-ban","status":"ACTIVE","authors":[],"Alttitle":{"minfo":""},"artag":"REUTERS","artdate":"2018-07-12 12:03:25","lastupd":"2018-07-12 12:03:25","breadcrumbTags":["China","trade war","ZTE","Telecom equipment","international","US"],"secinfo":{"seolocation":"telecomnews\/chinas-zte-clears-hurdle-to-lifting-u-s-ban"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2018-07-12" data-index="article_1">

中国中兴通讯清除障碍解除美国禁令

美国周三表示,与中兴通讯公司签署了一项协议,为中国科技公司铺平了道路恢复运营后近三个月禁止与美国供应商做生意。

  • 发布于2018年7月12日12:03点坚持

由卡伦Freifeld

美国周三表示,它签署了一项协议中兴通讯集团,为中国科技公司铺平了道路恢复运营后近三个月禁止与美国供应商做生意。

禁止中国的第二大电信设备制造商将被删除后,该公司在一个托管账户存款4亿美元,美国商务部在一份声明中说:宣布一个托管协议已签署。

4月实施的禁令,并造成中兴停止主要业务,一直是华盛顿和北京之间的摩擦,这是从事不断升级的贸易争端。

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中兴没有立即回复记者的置评请求。

“今天的声明标志着这个长篇故事的结束的开始,”道格拉斯·雅各布森说,华盛顿的律师代表中兴通讯供应商。

托管协议的一部分,与美国商务部(Commerce Department)达成的14亿美元和解中兴上个月重新进入美国供应商,它依赖的组件为其智能手机和网络设备。

后的禁令是中兴通讯打破了达成一个协议去年中兴通讯在美国联邦法庭认罪后因非法向伊朗航运美国商品和技术,违反了美国的制裁。

新的解决方案包括一个10亿美元的罚金,中兴美国财政部上个月和托管账户中的4亿美元,美国可以抓住如果中兴违反最新的结算。10亿美元的罚金是除了中兴通讯去年支付近9亿美元。

一旦禁令解除,中兴通讯,雇佣了大约80000人,预计将重启重大行动。中兴通讯的同时,一个新的特朗普大厦的缓刑政府征收10%关税的威胁2000亿美元的中国商品。

在其声明中,美国商务部表示,中兴通讯行动是执法问题与更广泛的贸易政策的讨论无关。

广告
“中兴通讯协议代表最严厉的惩罚和严格的合规制度部门曾对在这种情况下,”商务部说。

5月美国总统唐纳德·特朗普推,他关闭了中兴通讯,然后让它重新开放,尽管没有尚未达成协议,解除禁令。他说,他正在与中国国家主席习近平给中兴通讯“回到业务,快。”中兴通讯had said the ban threatened its survival.

白宫贸易顾问彼得·纳瓦罗上月表示,特朗普决定允许中兴再次购买美国零部件作为个人对Xi展示善意更大的努力。

美国供应商一直急于恢复业务自美国商务部长威尔伯•罗斯宣布6月7日进行结算。中兴通讯支付超过200的美国公司在2017年超过23亿美元,包括高通(qcom . o:行情)、英特尔(intc . o:行情)、博通公司和德州仪器公司。

较小的美国供应商的股价,更依赖于中兴,缩减亏损的消息后,包括光学组件制造商金合欢通讯公司,Oclaro (aapl . o:行情)和Lumentum Holdings Inc .)乐动扑克

中兴股票停牌近两个月后,禁令是和失去了一半价值。

该公司上周收到商务部的有限的一个月缓刑维护现有网络和设备。

根据新的协议,中兴通讯被要求在三十天内改变它的董事会和管理层。它还将运营下未来10年暂停禁令。目前的禁令可能会持续了7年。

此外,该公司必须聘请外部合规监控由商务部。部门错过了30天的期限选择监控,但周三表示时间表调整进行“尽职调查”。

有争议的班长任命联邦法官的任期三年在德克萨斯州去年认罪的一部分已经到位。

中兴还同意允许美国政府无拘无束的美国网站访问验证组件是由中兴通讯作为声称,和美国发布的计算组件在其产品在其网站上用中文和英语。

美国参议院成员上个月敦促胜过考虑解决,说中兴对国家安全构成“重大威胁”。

参议院铺平了道路与特朗普上个月在这个问题上,当它通过年度国防政策法案包括一项修正案试图反向交易。这项措施仍有可能被杀死时,参议院和众议院将在未来几周达成妥协版本的法案。

参议院的民主党领袖,查克•舒默(Chuck Schumer)周三称为中兴通讯协议“可怕的”,并表示将“破坏我们国家和经济安全。”He said he hopes his Republican colleagues in the House and Senate will "maintain the Senate's strong language in the defense bill."

路透6月5日透露,中兴通讯与商务部签署了一项初步协议,罚款和其他条件。4月份也打破禁令的消息。乐动扑克

美国调查中兴通讯成立2012年据路透社报道后船公司签署了合同硬件和软件价值数百万美元的伊朗的一些著名的美国科技公司。(https://reut.rs/2GbpCmO)

(由卡伦Freifeld报告;编辑通过丽莎·舒梅克和莱斯利·阿德勒)

  • 发布于2018年7月12日12:03点坚持
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By Karen Freifeld

The United States said on Wednesday that it signed an agreement with ZTE<\/a> Corp that paves the way for the Chinese tech company to resume operations after a nearly three-month ban on doing business with American suppliers.

The ban on
China<\/a>'s No. 2 telecommunications equipment maker will be removed once the company deposits $400 million in an escrow account, the U.S. Commerce Department said in a statement announcing that an escrow agreement had been signed.

The ban, which was imposed in April and caused ZTE to cease major operations, has been a source of friction between Washington and Beijing, which are engaged in an escalating trade dispute.

ZTE did not immediately respond to a request for comment.

\"Today's announcement marks the beginning of the end of this long-running saga,\" said Washington attorney Douglas Jacobson, who represents ZTE suppliers.

The escrow agreement is part of a $1.4 billion settlement ZTE reached with the Commerce Department last month to regain access to U.S. suppliers, whose components it relies on for its smartphones and networking gear.

The ban was imposed after ZTE broke an agreement reached after ZTE pleaded guilty in U.S. federal court last year for illegally shipping U.S. goods and technology to Iran, in violation of U.S. sanctions.

The new settlement includes a $1 billion penalty that ZTE paid to the U.S. Treasury last month and the $400 million in the escrow account that the United States could seize if ZTE violates the latest settlement. The $1 billion penalty is in addition to nearly $900 million ZTE paid last year.

Once the ban is lifted, ZTE, which employs around 80,000 people, is expected to restart major operations. The reprieve for ZTE coincides with a new Trump administration threat of 10 percent tariffs on $200 billion of Chinese goods.

In its statement, the Commerce Department said the ZTE action is a law enforcement matter unrelated to broader discussions of trade policy.

\"The ZTE settlement represents the toughest penalty and strictest compliance regime the department has ever imposed in such a case,\" the Commerce Department said.

U.S. President Donald Trump tweeted in May that he had closed down ZTE and then let it reopen, although no agreement to lift the ban had yet been reached. He said he was working with Chinese President Xi Jinping to give ZTE \"a way to get back into business, fast.\" ZTE had said the ban threatened its survival.

White House trade adviser Peter Navarro said last month that Trump decided to allow ZTE to again buy U.S. parts and components as a personal favor to Xi to show good will for bigger efforts.

U.S. suppliers have been anxious to resume business since U.S. Commerce Secretary Wilbur Ross announced the settlement on June 7. ZTE paid over 200 U.S. companies more than $2.3 billion in 2017, including Qualcomm Inc, Intel Corp, Broadcom Inc and Texas Instruments Inc.

Shares of smaller U.S. suppliers, which are more dependent on ZTE, pared losses after the news, including optical component makers Acacia Communications Inc, Oclaro Inc and Lumentum Holdings Inc.

ZTE's shares were suspended for almost two months after the ban was imposed and have lost about half their value.

The company last week received a limited one-month reprieve from the Commerce Department to maintain existing networks and equipment.

Under the new settlement, ZTE was required to change its board and management within 30 days. It also will operate for the next 10 years under a suspended ban. The current ban could have lasted up to seven years.

In addition, the company must hire an outside compliance monitor selected by the Commerce Department. The department missed a 30-day deadline to choose the monitor, but said on Wednesday the timetable was adjusted to conduct \"due diligence.\"

A controversial monitor appointed to a three-year term by a federal judge in Texas as part of last year's guilty plea already is in place.

ZTE also agreed to allow the U.S. government unfettered site visits to verify U.S. components are being used as claimed by ZTE, and to post calculations of the U.S. components in its products on its website in Chinese and English.

Members of the U.S. Senate last month urged Trump to reconsider the settlement, saying that ZTE posed \"a significant threat\" to national security.

The Senate paved the way for a showdown with Trump over the issue last month, when it passed an annual defense policy bill including an amendment attempting to reverse the deal. The measure could still be killed when Senate and House of Representatives meet in the coming weeks to forge a compromise version of the bill.

Chuck Schumer, the Senate's top Democrat, on Wednesday called the ZTE deal \"awful\" and said it would \"undermine our national and economic security.\" He said he hopes his Republican colleagues in the House and Senate will \"maintain the Senate's strong language in the defense bill.\"

Reuters revealed on June 5 that ZTE had signed a preliminary agreement with the Commerce Department, along with the fine and other terms. It also broke news of the ban in April.

A U.S. investigation into ZTE was launched after Reuters reported in 2012 the company had signed contracts to ship hardware and software worth millions of dollars to Iran from some of the best-known U.S. technology companies. (https:\/\/reut.rs\/2GbpCmO)

(Reporting by Karen Freifeld; editing by Lisa Shumaker and Leslie Adler)

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