Well, technology enthusiasts knew that at some point this was going to happen. A trade war between China and the US is a disaster and there will be no winners, just chaos. In mid-April, the US Department of Commerce’s Bureau of Industry and Security stated that ZTE violated the U.S. government’s sanctions ban and it prohibited ZTE from purchasing component products and software (including mobile phone processors and operating systems) from the United States for 7 years.
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This move has caused a great impact on ZTE. The company is completely unable to operate normally and has to suspend its business. The financial report and the general meeting of shareholders have also been postponed. It’s over a month now and there have been numerous talks at the highest level of government between the US and China. Some time ago, the United States President Mr. Donal Trump showed an unusual concern with ZTE situation, and all those people in China losing their jobs due to the company’s sudden ending of business. He said that both countries are in talks to get ZTE back to business fast. However, the US House Appropriations Committee unanimously passed an amendment to a bill that prevents Commerce Department from changing the sanctions imposed to ZTE last month, that includes the US export ban that will end in 2025.
In a fresh new twist, a report in China states that the US and China have reached a general framework for resolving the controversial issue of ZTE. The agreement will lift the ban on U.S. companies selling components and software to ZTE. At the same time, ZTE will be required to make large-scale adjustments to management and the board of directors. ZTE immediately confirmed the news as true.
According to the latest announcement from the Ministry of Foreign Affairs, Foreign Ministry Spokesperson Lu Yong said that China and the United States have reached an important consensus and will start consultations on how to implement the details. The US will send high-level delegations to China to conduct specific consultations in the corresponding fields.