WASHINGTON (Reuters) – The Trump administration told lawmakers the US government has reached a deal to put Chinese telecommunications company ZTE Corp back in business after it pays a significant fine and makes management changes, a senior congressional aide said on Friday.
US President Donald Trump appeared to confirm the deal in a tweet late on Friday. “I closed it down then let it reopen with high level security guarantees, change of management and board, must purchase US parts and pay a $1.3 Billion fine.”
The reported deal involving China’s second-largest telecommunications equipment maker ran into immediate resistance in Congress, where Democrats and Mr Trump’s fellow Republicans accused him of bending to pressure from Beijing to ease up on a company that US intelligence officials have suggested poses a significant risk to US national security.
ZTE was banned in April from buying US technology components for seven years for breaking an agreement reached after it violated US sanctions against Iran and North Korea. After ZTE makes a series of changes it would now be allowed to resume business with US companies, including chipmaker Qualcomm Inc.
