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Donald Trump says there’s a path for ZTE back into the US

Donald Trump might rescue one of China’s largest telecommunication companies from dying if he can secure a deal.

ZTE is at the center of a controversy that involves both technology and politics. The U.S. Department of Commerce issued a seven-year ban that prevents any engagement with domestic suppliers. It’s a decision that was made after the Chinese company didn’t adhere to the terms of sanctions from 2017. Aside from paying a massive fine, ZTE was in agreement to fire key employees and discipline others.

While the company did make payments for illegally shipping products to Iran, ZTE didn’t make proper concessions regarding its staff.

The failure to follow the U.S. government’s guidelines means ZTE cannot purchase components from any American company, thus dropping Qualcomm from its supply chain. Even the use of Android is in limbo. With so much reliance on domestic suppliers, ZTE’s business is essentially doomed.

President Trump, however, believes he can cut a deal that will give a second chance to ZTE.

Over the weekend, the President announced that he’s working with President Xi Jinping of China to create a path for ZTE to return to normalcy. Trump admits the punishment severely cripples the Chinese company, and jobs in its native country are being lost. He claims to have instructed the Department of Commerce to figure out a resolution.

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