ZTE will be saved by Trump for $1.3 billion and the guarantee of changes in the company's management. The Chinese smartphone maker has been guilty of violating an embargo to ban the sale of products to Iran and North Korea, closing the doors to Qualcomm's SoC, among others. However, the US president would like to help the firm if it complies with its requirements.
Donald Trump confirms via a tweet that an arrangement will be found for ZTE to sell its smartphones again. The U.S. president is demanding that the company pay $1.3 billion. In particular, there is talk of making several changes within the management of the company, without elaborating on this point. Of course, ZTE will also have to continue to supply U.S. components.
ZTE: To save the company, Trump demands $1.3 billion and changes in direction
ZTE had to stop selling smartphones that could no longer supply components because the firm was accused by US authorities of violating an embargo by selling products to Iran and North Korea. ZTE supplies the American Qualcomm for soCs embedded in its aircraft. However, things are changing and the Trump administration has decided to save ZTE, negotiations are still ongoing.
AFP recently reported that Trump indirectly received $500 million from China before deciding to save ZTE. Some observers have reconciled this lucrative transaction for companies owned by the US president with the latter's decision to save the Chinese manufacturer. In any case, the Chinese firm will most likely be able to resell its smartphones again in the very near future.
Senator Schumer and Obama Administration let phone company ZTE flourish with no security checks. I closed it down then let it reopen with high level security guarantees, change of management and board, must purchase U.S. shares and pay a $1.3 Billion fine. Dems do nothing….
— Donald J. Trump (@realDonaldTrump) May 25, 2018