ZTE Can Now Buy U.S. Chips, Move on 5G Deal
The U.S. decision to levy $1 billion fine in exchange for lifting sanctions against China’s mobile phone manufacturer enables the telecom giant to continue buying computer chips from American companies while also acquiring a Dutch company to help it build the next generation of wireless technology.
A story in The New York Times outlines the anger of American diplomats and politicians over the deal, which caters to Chinese President Xi Jinping’s requests to give the company special favors after knowingly selling its products to companies banned from U.S. trade for national security reasons. ZTE collapsed after it was unable to import U.S. company-made computer chips. The U.S. Commerce Department, headed by Secretary Wilbur Ross, negotiated the settlement.
To sweeten the deal, China pledged to buy nearly $70 billion in American agricultural goods, gas, coal and manufactured products, according to a NYT source. ZTE and Chinese tech firms have been unable to match the quality of chips made by Qualcomm, but plans to buy NXP Semiconductors, a Dutch firm, to help it improve its abilities. The company had faced a 7-year ban from buying U.S. products.
read more at nytimes.com