zte

Trump wants to just tariff the hell out of China

Another day, another whopper of a tariff. The Trump administration has been busy finalizing the rulemaking process to put 25 percent tariffs on $200 billion of Chinese goods, which will almost certainly affect the prices of many critical technology components and have on-going repercussions for Silicon Valley supply chains. That followed the implementation of tariffs on $50 billion of goods earlier this year. Now, President Trump, as reported by reporters on Air Force One this morning, has said that he is prepared to triple down on his tariffs strategy, saying that he is ready to add tariffs to another $267 billion worth of Chinese goods. Although the president has a flair for the dramatic in many of his policies, the China tariffs are one arena in which his rhetoric has matched the action...

Australia bans Huawei and ZTE from supplying technology for its 5G network

Australia has blocked Huawei and ZTE from providing equipment for its 5G network, which is set to launch commercially next year. In a tweet, Huawei stated that the Australian government told the company that both it and ZTE are banned from supplying 5G technology to the country, despite Huawei’s assurances that it does not pose a threat to national security. We have been informed by the Govt that Huawei & ZTE have been banned from providing 5G technology to Australia. This is a extremely disappointing result for consumers. Huawei is a world leader in 5G. Has safely & securely delivered wireless technology in Aust for close to 15 yrs — Huawei Australia (@HuaweiOZ) August 22, 2018 Earlier today, the Australian government issued new security guidelines for 5G carriers. Although it did...

New defense bill bans the U.S. government from using Huawei and ZTE tech

U.S. government agencies will be forbidden from using certain components or services from several Chinese tech firms, including Huawei and ZTE. The ban was signed into law today by President Trump as part of the Defense Authorization Act and will go into effect over the next two years. The bill covers anything that is a “substantial or essential component of any system,” as well as tech that is used to route or view user data. So even though it doesn’t mandate an outright ban on Huawei and ZTE products, it still means many government workers or contractors, or companies that want to do business with the government, will have to jettison much of their current technology. The Defense Authorization Act also directs U.S. agencies to allocate funding to companies that need to replace equipment ...

The U.S. and ZTE reach a deal that will lift export ban

The United States government has made a deal with Chinese telecommunications giant ZTE that, once completed, will lift the ban preventing the company from working with American suppliers. The agreement eases tensions in the U.S.-China trade war because the seven-year denial order, which the Trump administration imposed in April after ZTE violated sanctions against North Korea and Iran, was a major point of contention between the two countries. Our statement on #ZTE and the escrow agreement: pic.twitter.com/w0Bbej1mAU — U.S. Commerce Dept. (@CommerceGov) July 11, 2018 According to a statement from the Commerce Department, once ZTE completes a $400 million escrow payment, the department’s Bureau of Industry and Security (BIS) will lift the ban. The Commerce Department says “the ZTE settlemen...

ZTE replaces its CEO and other top execs

A number of top executives are out at ZTE as the phone maker works to fulfill the requirements of U.S.-imposed restrictions. Among the big changes up top is new CEO Xu Ziyang, who formerly headed up the company’s operations in Germany. A new CFO, CTO and head of HR have been named, as well, according to The Wall Street Journal. The move comes a few days after company slowly began to resume some business operations on a one-month waver, following a seemingly D.O.A. seven-year export ban. The ban was announced back in April, after the company failed to appropriately punish top employees over Iran/North Korean trade violations. Trump, however, was quick to toss the company a lifeline, citing potential job loss in China. The President’s willingness to bail out ZTE has been met with staunch cri...

ZTE has few cards left to play to avoid ‘death penalty’

It’s not every day you see a company that employs 75,000 and once had a market cap of $20 billion facing instant doom on an hour-by-hour basis. But that’s the situation that Chinese telecom firm ZTE finds itself in right now. Following revelations that the company sold equipment with U.S. technology to Iran and North Korea in violation of U.S. sanctions, President Trump decided to kill the company. Then he decided not to kill it. Now, this week, Congress is deciding whether to kill it or not, much to the chagrin of the White House, who thought the matter closed. Senators like Tom Cotton (R-AK) this week have said they believe that the “Death penalty is right penalty for ZTE’s behavior.” Before we go further, let’s step back for a moment and just muse about what is happening here. Congress ...

U.S. announces timeline for 25% tariff on Chinese tech products

After significant back-and-forth over the past few months, the White House intends to follow through with a pledge to place tariffs on imported Chinese technology goods while also tightening restrictions on investments by Chinese firms into American companies. In a statement posted by the White House this morning, the administration said that it would impose a 25% tariff on $50 billion of Chinese high-tech goods “containing industrially significant technology.” That follows the conclusion of the U.S. Trade Representative’s Section 301 investigation into China’s industrial and intellectual property policies. What goods will be included in the tariff policy has been up for debate, but the final list will be released on June 15th. This package of tariffs is different than a separate package o...

What President Trump Doesn’t Know About ZTE

David Kline Contributor David Kline is a journalist, author and intellectual property strategist. More posts by this contributor A new (old) way for product makers to defeat patent roadblocks After meeting with Chinese Vice Premiere Liu He this week, President Trump is still considering easing penalties on Chinese telecommunications giant ZTE over its violation of sanctions against Iran and North Korea. But what Mr. Trump may not realize is that ZTE is also one of the world’s most notorious intellectual property thieves — perhaps even the most notorious of all. Since stopping Chinese theft of U.S intellectual property is one of the President’s most important trade objectives, Mr. Trump should refuse to ease sanctions against ZTE until it stops its high-tech banditry and starts playing by t...

Trump says ZTE will pay $1.3B fine and overhaul its management to continue US business

U.S. President Donald Trump has claimed that Chinese telecom firm ZTE will pay a $1.3 billion fine and undergo a significant overhaul of its management team in order to remain operational in North America. ZTE looked to be in dire straits when it ceased its business in the U.S. earlier this month after a Department of Commerce order banned U.S. partners from selling components to the company in response to it flouting trade bans in Iran and North Korea. The company has since been reprised — a strategy move within the U.S.-China trade stand-off — but Trump said today that its new life comes at a cost. That’s apparently a $1.3 billion fine, a new management team and board, and “high-level security guarantees.” Senator Schumer and Obama Administration let phone company ZTE flourish with no se...

U.S. and China reportedly working on a deal to save ZTE

The United States and China are said to be working on a deal that would keep ZTE from going out of business. According to the Wall Street Journal, the two countries have agreed on a “broad outline” of a deal to settle a trade dispute sparked when the Commerce Department banned American companies from selling to ZTE for seven years after it violated sanctions against Iran and North Korea. If the deal goes through, the U.S. would lift the ban. In return, ZTE would have to make major leadership changes and also potentially face heavy fines. The deal would enable its business to survive, however, since many of its most important suppliers, including Qualcomm, are American and the ban has the potential to cause irreversible damage to its business. ZTE is also the fourth-largest vendor of mobile...

House committee accepts amendment to uphold ZTE ban

The bizarre recent tale of ZTE is getting another wrinkle. Earlier today, a bipartisan House Appropriations Committee unanimously voted to accept an amendment to uphold sanctions against the company. The amendment to the 2019 Commerce, Justice, and Science Appropriations bill is, of course, being viewed as a rebuke of the president, whose tweets over the weekend appeared to suggest a softening on the seven-year ban imposed by the Department of Commerce last month. In fact, the amendment’s author, Rep. Dutch Ruppersberger of Maryland, called out Trump by name on social media, adding in a press release tied to the news, “This amendment, which passed with the unanimous support of my colleagues on both sides of the aisle, shows that, when the United States enacts sanctions, we stand behind the...

How ZTE became the focal point of US/China relations

Here in the States, ZTE has been content with a kind of quiet success. The Chinese smartphone maker has landed in the top five quarter after quarter (sometimes breaking the top three, according to some analysts), behind household names like Apple, Samsung and LG. Suddenly, however, the company is on everyone’s lips, from cable news to the president’s Twitter account. It’s the kind of publicity money can’t buy — but it’s happening for one of the worst reasons imaginable. ZTE suddenly finds itself in the eye of a looming trade war between superpowers. Iranian sanctions were violated, fines levied and seven-year international bans were instated. It’s like a story ripped from the pages of some Cold War thriller, though instead of Jason Bourne, it’s that one budget smartphone company that you’v...

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