505 It seems that the “soap opera” of ZTE with E.E.U.U is very close to finish. It all started in…
It seems that the “soap opera” of ZTE with E.E.U.U is very close to finish. It all started in April when the American giant harshly sanctions ZTE for breaking an agreement of commercial block about Iran and some alleged espionage behaviors through the software of their phones. So serious was this sanction for the Chinese company, that in May ZTE announced that it was paralyzing production and sale of smartphones, pending the resolution of this conflict.
And it is that ZTE was in a very compromised situation, since not to sell in the USA supposed to lose 30% of its profits, to which was added the problem of not being able to buy any processor from Qualcomm, something that practically leaves them in the staked, leaving Mediatek as the only option for the manufacturer, although Samsung offered to sell their Exynos SoCs.
Now the Reuters agency informs us earlier this week, both the US and ZTE were about to reach an agreement by which this Chinese manufacturer could resume normal operations, something that will be a joy for the 75,000 workers who had was suspended after the announcement made in May.
ZTE will return to the business shortly, but the government of Donald Trump has not given to twist his arm too easily, since ZTE will again sell mobile, but only if it meets the conditions of a very demanding agreement for the Chinese company, which will have to pay a fine of billions of dollars and pay others 400 million as a guarantee in case of future breaches of the agreement.
He has been the Secretary of Commerce of the United States, Wilbur Ross , the one that has confirmed to the CNBC that the US government reached an agreement with ZTE to lift the prohibition on sale and supply on April 16, for which, in addition to the fine and deposit mentioned, ZTE will have to change its executive and executive leadership within 30 days.
ZTE will again sell mobile phones, but the conditions of the American government do not end with the previous one, since ZTE has also demanded the creation of a “Compliance team” formed by US personnel who would be responsible for checking and monitoring that the terms of the agreement are strictly complied with and that ZTE does not carry out any illegal behavior. In short, that ZTE will have a rigid babysitter from which he can not escape.
According to the Chinese authorities, It’s a matter of hours before ZTE becomes operational again and can access the entire American market for SoCs, radio chips and software again, and this time we are sure that ZTE will think twice before ignoring this super-western power , because otherwise, the move could come out, literally “very expensive”. We’ll see what all this history is about.