The drama between the United States and Chinese company, ZTE is still on. Despite the agreement reached between the two parties where ZTE agreed to pay a $1 billion fine and lodge another $400 million into an escrow account, US senators on Monday voted (85 – 10) for a sweeping defense policy bill that incorporates thwarting the understanding between US President Donald Trump and the ZTE. The company has paid the $1 billion civil penalty last week and it is currently working on an escrow arrangement with the US government before the ban can be lifted.
According to Reuters, a majority of US senators were in agreement in this issue irrespective of party affiliation. The all expressed concern about ZTE and Huawei Technologies Ltd but ZTE’s failure to obey the Iran ban is a good opportunity to clamp the company in the neck.
From all indication, ZTE cannot do business without American technology. The company’s factories had to shut down after its ban in April and its shares have been dropping like rain. The actual way forward on this issue is unknown but President Trump is believed to have met with House Republicans on Teusday and will meet with senators on today to find a solution. If ZTE’s ban is reinstated, that might put the company on the verge of bankruptcy.