CONGRESS MOVING TO BLOCK TRUMP DEAL WITH ZTE OVER IRAN SANCTIONS VIOLATIONS

Rferl on 12th June reported that Trump’s Republican allies in the US Congress are moving to block his deal to put Chinese telecom giant ZTE back in business if it pays $1 billion more in fines for violating U.S. sanctions against Iran.  Democratic and Republican lawmakers have said they believe ZTE’s sales to Iran represent particularly “dangerous” breaches of US national security.

https://www.rferl.org/a/congress-moving-block-trump-deal-china-telecom-giant-zte-over-iran-sanctions-violations-/29284235.html

US REVEALS DETAILS OF AGREEMENT WITH ZTE

On 12th June, Telecomlead carried an article detailing the deal between the US Department of Commerce and Chinese telecoms company ZTE for the former to lift the 7-year export supply ban on the latter, which threatened to put ZTE out of business –

  • ZTE will pay $1 billion penalty and deposit an additional $400 million in suspended penalty money – this being in addition to the $892 million in penalties ZTE has already paid.
  • The $400 million will be held in a US bank account for 10 years and can be forfeited if ZTE fails to abide with the agreement.
  • ZTE will retain special compliance staff selected by and answerable to the US authorities for 10 years, and these will monitor ZTE compliance with US export control laws.
  • ZTE will fund the chief co-ordinator and staff of at least 6 employees.
  • ZTE will replace the board of directors and senior leadership team for 2 entities that work with global telecom equipment makers and smartphone market.
  • ZTE must report details about all Chinese government ownership and control of ZTE.
  • ZTE must post calculations of the US components in its products on its website. ZTE should not take any action or make any public statement, even indirectly, denying any of the allegations against it.

http://www.telecomlead.com/telecom-equipment/us-reveals-details-of-agreement-indicating-a-big-blow-on-zte-84660

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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