On Tuesday, local time, Trump said at the White House that the U.S. government has not reached any agreement with the Chinese government on ZTE.
He said that the implementation of the ban on ZTE would also damage the interests of U.S. companies. He expected that ZTE may be required to pay a fine of up to 1.3 billion U.S. dollars and change management, establish a new board of directors, and adopt 'very, very strict safety regulations'. It is also expected that ZTE will purchase a large proportion of components and equipment from the United States in the future.
Trump pointed out that he was not satisfied with the Sino-U.S. negotiations in Washington last week and stated that this is the first step in reaching a final agreement with the Chinese government. He hopes that the next trade talks will proceed quickly.
ZTE's solution to the problem is costly
Caijing Magazine
The U.S. "Wall Street Journal" quoted sources as saying on May 22 that China and the United States have reached a general framework for resolving the disputed issues of ZTE. The agreement will lift the ban on U.S. companies selling components and software to ZTE.
A number of mainstream American media reported that China and the United States have reached an agreement on resolving the ZTE issue. The ZTE board of directors faces a high probability of rectification. According to sources, ZTE will be forced to make major adjustments to management and board seats and may pay a large fine.
The last round of Sino-U.S. talks did not involve ZTE. The Wall Street Journal stated that Chinese Foreign Minister Wang Yi will hold a meeting in Washington this week and will continue to negotiate on ZTE. The U.S. Secretary of Commerce responsible for the ZTE case Wilbur Ross plans to arrive in Beijing next week.
In other words, the ZTE problem is developing in a good direction, but the fate of ZTE has not been finalized. ZTE's report on the Wall Street Journal declined to comment.
A third-party core person close to the incident told the “Finance” reporter that even if high-level Chinese and U.S. officials finalize the solution for the ZTE Incident, ZTE will also experience notification, propose solutions and implement this long-term solution process. ZTE will not Respond to an anonymous source.
The above-mentioned core person says, because the negotiation of Wang Yi and Wilbur Rose has not begun, so ZTE does not receive any notice at present.
However, the news of the “Financial” reporter got the message that on May 19th, some managers of ZTE's production line had received notice of preparations for returning to work.
The "New York Times" reported on May 21st that the US Treasury Secretary Steven Mnuchin denied that the United States would reconsider whether to penalize China Telecom ZTE as part of the Sino-U.S. trade talks. Mukuchin said that ZTE and trade negotiations Both are not 'exchange conditions'.
"The New York Times" reported that Munuchin believes that the Trump administration will not easily "drain" on the issues of ZTE or trade negotiations. Larry Kudlow, Trump's chief economic advisor, interviewed by American Broadcasting Corporation Say, 'Even if the (ZTE's) solution has changed, it will still be very severe, including large fines, rectification measures, new management and a new board. I think President Trump is doing this because He talked well with China. '
However, some people interviewed by the "Finance" reporter said that ZTE's board of directors is facing a large probability of rectification, and the ownership structure may also change.
Sources told the “Finance” reporter that the equity ratio of Shenzhen Zhongxing Weixiantong Co., Ltd. held by the founding team of ZTE is likely to be diluted in ZTE's stock ratio. In response, Caijing asked the relevant parties to verify Respond.
The substantive and positive turning point in the time of ZTE’s ban was on May 13 (Eastern Time). US President Trump posted on the social platform Twitter on the same day that President Xi Jinping and he are working together to provide ZTE a fast recovery business. Way, otherwise China will lose too many jobs. He has instructed the Ministry of Commerce to complete this work.
However, on May 16, Trump issued a series of tweets to criticize the U.S. media for his 'false report' that he decided to resume the insider business of ZTE.
Trump’s attitude towards ZTE has repeatedly led to criticisms from some domestic Americans.
Frank Samolis, International Trade Co-Chair of Squire Patton Boggs LLP, told the Caijing reporter that Trump’s actions were extraordinary and ironic—US Department of Commerce Due to the '232 investigation', a 25% tariff was levied on imported steel, a tariff of 10% was imposed on imported aluminum, a large number of U.S. companies received a request to lift restrictions, the U.S. Department of Commerce was overwhelmed, and a large number of requests were backlogged. However, Pune began to intervene in helping ZTE. The Trump administration has endlessly adopted various small measures without any clear overall strategy.
According to sources, the negotiation is still far from reaching an agreement. Any relaxation of the ban should be subject to review by the US National Security Department.
From the perspective of helping Americans find employment, former White House official Andrew Frank interpreted Caijing reporters that President Trump has promoted policies in this way after the Ministry of Commerce’s professionals have decided. It is a case. He may finally realize that ZTE is not only China’s employment, but also a lot of U.S. employment.
Perhaps to ease domestic sentiment, U.S. Treasury Secretary Numchin said in an interview earlier: 'Our purpose is not to let the (ZTE) company go bankrupt.'