Trump envisions hefty fine, new ZTE management, and tighter security after the firm was caught violating the US ban on trade with Iran, North Korea
U. S. President Donald Trump said Tuesday « there is no deal » yet to lift the seven-year ban on the sale of American-made components to the giant Chinese telecommunications company ZTE, but that there might be a settlement as part of ongoing trade talks between the world’s two biggest economies.
Trump told reporters at the White House that he could envision a $1.3 billion fine against ZTE for violating the U. S. ban on trading with Iran and North Korea, the replacement of ZTE’s management and board of directors and imposition of « very, very strict security » to prevent the theft of U. S. intellectual and national security secrets.
« We caught them doing bad things, » he said.
Trump said Chinese President Xi Jinping asked him to look into the fate of ZTE after the firm said it had to shut its production because the U. S. banned sale of American-made components ZTE uses to manufacture an array of technology products until 2025. Trump said he also heard protests from the U. S. companies selling goods to ZTE.
Trump declared he was « not satisfied » with the state of U. S.-China trade talks after last week’s negotiations in Washington. China agreed to « substantially reduce » the $375 billion annual trade surplus it has over the U. S. by buying more American goods, but there was no mention of any specific import and export targets in the statement agreed to by the two countries.
U. S. Commerce Secretary Wilbur Ross is headed to China next week for further trade talks.
Trump commented on the ZTE case as U.
