Chinese megacorp can do business in U.S. again
The Chinese telecommunications giant ZTE Corp. can stay in business thanks to a deal with the United States. ZTE halted its main operations in early May after the U.S. Commerce Department blocked it from importing American components for seven years. The Commerce Department accused ZTE of selling equipment to North Korea and Iran but said Thursday the company could start doing business in the United States again if it paid $1 billion in fines and put $400 million in escrow as a guarantee it won’t break the new agreement. The United States will also place agents in the company to monitor its compliance. The deal could pave the way for smoother trade negotiations with China in the future, but the president’s critics accused him of going too easy on ZTE, a repeat offender. “Despite his tough talk, this deal with ZTE proves the president just shoots blanks,” said Sen. Chuck Schumer, D-N.Y.
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