U.S. may soon claim up to $1.7 billion penalty from China's ZTE - sources

[Eugene]

Source: Reuters

BUSINESS NEWS JUNE 1, 2018 / 4:00 PM / UPDATED 2 HOURS AGO

Exclusive: U.S. may soon claim up to $1.7 billion penalty from China's ZTE - sources

Karen Freifeld
5 MIN READ

(Reuters) - The Trump administration may soon claim as much as $1.7 billion penalty from ZTE Corp (000063.SZ), as it looks to punish and tighten control over the Chinese telecommunications company before allowing it back into business, according to people familiar with the matter.

The Commerce Department is also seeking unfettered site visits to verify U.S. components are being used as claimed by ZTE, and wants it to post calculations of the U.S. components in its products on a website, the people said.

China’s No.2 telecommunications equipment maker has been crippled by a ban imposed in April on buying U.S. technology components for seven years for breaking an agreement reached after it was caught illegally shipping goods to Iran and North Korea.

The negotiations with ZTE come as U.S. Commerce Secretary Wilbur Ross heads to Beijing this weekend for trade talks.

One source said Washington also wants ZTE to replace its board and executive team as soon as 30 days, but a deal still has not been finalized and the sources cautioned that the penalties were fluid and the terms could change.

-snip-

Read more: https://www.reuters.com/article/us-usa-trade-china-zte-exclusive/exclusive-u-s-may-soon-claim-up-to-1-7-billion-penalty-from-chinas-zte-sources-idUSKCN1IX5T2

[Crutchez_CuiBono]

1. whats in it for the trumps?

That's all i have to say re. this. God damn money grubbers.

[RainCaster]

2. So China is going to build the wall?

Yeah

[muriel_volestrangler]

3. 500m dollar Chinese loan to Indonesian project Trump is invested in

Trump helps sanctioned Chinese phone maker after China delivers a big loan to a Trump project

Then on April 15, the Commerce Department hit ZTE again, saying that despite the earlier fine and settlement, ZTE had continued to violate US sanctions law and lie to the US government. The new order simply barred American companies from selling anything to ZTE.
...
On May 9, ZTE announced that it was going to have to shut down its entire smartphone business since it had no viable way to continue operating without Qualcomm chips.

On May 11, a state-owned Chinese construction company called the Metallurgical Corporation of China announced it would float a $500 million loan to Indonesian developers to facilitate the construction of a vast “integrated lifestyle resort” called MNC Lido City that includes Trump-branded hotels, residences, and a golf course.

On May 13, Trump tweeted: “President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!”

https://www.vox.com/policy-and-politics/2018/5/15/17355202/trump-zte-indonesia-lido-city

[Crutchez_CuiBono]

4. Can't be all of it...

He.."has this thing...and it's fucking golden..." and he's "not letting it go for nothing." (Blagovich...setting the precedent.)