The trumpet administration hit a life-threatening deal with China's technology giant ZTE to save the company from bankruptcy threatening it following a April ban on the purchase of US hardware and software, reports The Times in New York, referring to a source familiar with developments. The federal government has already informed about legislators of development, same insider requirements. Instead of being prevented from purchasing Qualcomm chips and licensing an updated version of Google's Android operating system over the next seven years, ZTE agreed to pay a large fine, change its management teams, and hire US compliance officers to ensure the company's importing practices does not violate any US trade ban, such as those imposed on North Korea and Iran, who started the entire trial back in 2016.
The Trade Department's rejection order will be lifted concurrently with ZTE implementing these concessions, according to the same report. The official confirmation of the deal will arrive shortly and may even be done by the end of the day. White House and President Trump pushed personally for the federal regulatory authority to ease its sanctions against ZTE as a pioneer of Washington's trade negotiations with Beijing, whose first round was held in the US capital last week. In return, China can accelerate its antitrust review of San Diego-based Qualcomm's attempt to acquire NXP Semiconductors valued at approximately $ 44 billion, which has been drawing since 2016.
The development can lead to significant backlash from Capitol Hill, especially in the light of a recent bipartisan legislative effort to prevent ZTE from being punished. The Trade Department said earlier that ZTE failed to comply with its 2017 agreement on the above-mentioned trade sanctions and has paid annual bonuses to 35 employees agreed to discipline, in addition to accusing the company of repeatedly being a federal investigator. ZTE claimed that the matter was overblown, accidental and self-reported to the Office after the company's leadership learned about its existence, called the seven-year denial order unfairly and "unacceptable." President Trumps wants to push for smoother sanctions against ZTE criticism from both sides of stateside political spectrum, with Florida Senator Marco Rubio being one of the most high-profile Republicans who came out as opposed to that.