ZTE’s trouble with the United States is no surprise. The supplier ban that was slapped on it in April led to them ceasing all operations with US companies and/or within the USA. The No.2 Telecommunications Provider in China has received a temporary reprieve from the US government to resume business needed to maintain existing networks and equipment. ZTE is authorised to conduct its operations from July 2 to August 1, for a period of one month by the US CommerceĀ Department’s Bureau of Industry and Services.
ZTE has been sailing turbulent waters since April this year. While Trump did try to sway the Congress in ZTE’s favour, the US Congress had disapproved of the same and brought the company back into the ban. ZTE has agreed to pay a $1 billion fine and also put $400 million in an escrow account for a monitoring period of 10 years in order to resume business with US suppliers that provide most components used in their equipment. The Chinese telecommunications company also assured that they will be overhauling their complete structure of management. The same has led to over 14 members of the corporation to resign as of July 1. Apparently, 8 more executives have resigned as of Tuesday.
Gizchina News of the week
In recent news, ZTE has to pay a fine of $43 million to Maxwell for patent infringement of over 7 patents. Turns out, Maxwell, since 2013 has been trying to negotiate with ZTE on patent licensing with refusal from them to purchase authorization even after using the former’s technology. With the fines and cases that have hit ZTE right in the face, it seems like the corporation’s future in the US is anything but bright.
