x
Mobile/Wireless Components

Trump Denies ZTE Deal, Faces Senate Backlash

President Trump said Tuesday that there is no deal yet to save Chinese telecom vendor ZTE, which has shut up shop after the US blocked component sales to the company, and the Senate Banking Committee Tuesday moved to block any easing of sanctions on ZTE by the president.

ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) ceased operations on May 9 after the US shut down components exports of American-made chipsets and more, following long-time accusations that the company traded with Iran and North Korea. (See ZTE Ceases Business Operations After US Ban.)

On May 13, Trump tweeted "President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast." This surprised many, but those words are getting tougher to write every day. (See Trump Tweets on ZTE… & Gives the Chinese Vendor a Lifeline!)

The ZTE issue may have hampered wider trade talks with China, however, with US lawmakers angered by the reports that Trump would lift the export ban related to ZTE in favor of a $1.3 billion fine. (See Trump Tweetplomacy Could Backfire.)

"There is no deal. We will see what happens," Mr. Trump said in comments to reporters during a meeting between Mr. Trump and President Moon Jae-in of South Korea, The New York Times reported.

Almost concurrently on Tuesday, the Senate Banking Committee voted 23-2 to block Trump from easing sanctions on ZTE without first proving to Congress that ZTE is complying with US law. Meanwhile, 20 senators -- from both parties -- wrote urging Trump not to compromise on a deal with ZTE.

Stay tuned for the latest!

— Dan Jones, Mobile Editor, Light Reading

kq4ym 6/7/2018 | 7:35:22 AM
Re: Trump & ZTE The Executive branch is showing no change in the "let's keep them guessing' tactics of policy and frequent back tracking and false moves. One wonders how this is going to affect not only U.S. economy and markets but global trade as well in coming years. It's going to be an interesting "experiment" that might result in positives or negative consequences that are not easy to measure.
t.bogataj 5/25/2018 | 5:50:36 AM
Re: Trump & ZTE It used to be "Think globally, act locally". Then in the US they changed it to "Think locally, act globally". Now some omit the redundant acts and simplify it further to "Locally, act globally".
DanJones 5/24/2018 | 3:24:29 PM
Re: Trump & ZTE What about jobs in the US at Broadcom, Qualcomm etc? Are they not going to be affected too?
rocket101 5/24/2018 | 3:19:10 PM
Re: Trump & ZTE There should be no deal, let the 100% ban remain on ZTE. Why worry about the impact on Chinese jobs etc. and even Isreali vendors or whoever it be? Did anyone worry when ZTE and Huawei were uprooting European jobs and wanted to do do the same in USA by trying to sell gear to US service providers? Huawei decimated Nokia Siemens who was the incumbent vendor at Vodafone Germany. Huawei offered to sell Mobile core network gear for free if VOD bought RAN from them, this led to massive job losses in Nokia Siemens. Let Zte and Huawei suffer, no need to shed tears on these deceptive Chinese vendors.
Duh! 5/23/2018 | 10:26:46 AM
Re: Trump & ZTE Who keeps electing these dim bulbs?

Oh. I forgot. Never mind.
DanJones 5/23/2018 | 8:35:17 AM
Re: Trump & ZTE Oh, good question!
t.bogataj 5/23/2018 | 3:55:28 AM
Re: Trump & ZTE For weeks now we've been listening about impact of the ban on U.S. companies/vendors. But no news mentioned its (potential) impact on Israeli vendors. Are these being affected? If yes, what's their influence on possible lifting of the ban?

Dan, any news (or rumours) about it?

T.
DanJones 5/22/2018 | 8:50:17 PM
Re: Trump & ZTE Errrrr, well okaaay then!
RANalyst 5/22/2018 | 7:11:12 PM
Trump & ZTE Amazingly, Trump even said today that he is considering a deal that would, among other things, FORCE ZTE to buy much of its "parts & equipment" from U.S. suppliers -- after the U.S. has banned it from doing just that. Full quote here: https://tinyurl.com/ya6adc97
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE