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Commerce last month imposed a seven-year ban on ZTE from purchasing anything from U.S. companies – a move that cut it off from its suppliers that has been described as a "death sentence" for the company, which employs some 70,000 workers in China.
Secondly, Trump’s move to rescue ZTE, a company on the brink of extinction because it unlawfully did business in Iran, comes at a time when the U.S. has just reimposed sanctions on the Islamic Republic, and is threatening European companies that continue to trade there.
Perhaps most importantly, it is also extremely unusual for a U.S. president to threaten to override his own Commerce Department like this.
Here’s a quick recap of the situation.
ZTE, a major Chinese manufacturer of phones and telecom network equipment, was busting U.S. sanctions against Iran and North Korea by selling equipment there, despite the fact that the kit used American components.
Last year the Justice Department fined ZTE almost $900 million over the Iran stuff, and also got ZTE to agree to a seven-year suspended denial of export privileges.
In April, the Commerce Department said ZTE had broken its agreement with the U.S. government by giving full bonuses to the employees involved in the illegal Iran sales, failing to reprimand them, and also lying about this to the Commerce Department.
In an April letter setting out the company’s actions, the Commerce Department said the phone-maker engaged in a “extensive conspiracy,” approved by its then-CEO to evade U.S. laws.
“As a result of the conspiracy, ZTE was able to obtain hundreds of millions of dollars in contracts with and sales from Iranian entities to ship routers, microprocessors, and servers controlled under the Regulations for national security, encryption, regional security, and/or anti-terrorism reasons to Iran,” Richard R. Majauskas, acting assistant secretary of commerce for export enforcement, wrote in the April 15 denial order letter to ZTE.
Majauskas wrote that beyond violating trade laws, the company lied to investigators and tried to cover up wrongdoing. Some of the charges against ZTE, were related to actions to “obstruct and delay the U.S. Government’s investigation.”
Commerce Secretary Wilbur Ross last month called ZTE's behavior "egregious" and said it "cannot be ignored."
“Those who flout our economic sanctions, export control laws and any trade regimes will not go unpunished,” Ross said at the time. “They will suffer the harshest of consequences.”
However, Kevin Wolf, the Obama-era assistant secretary of commerce who launched the case against ZTE, told the Financial Times he was “speechless” at Trump’s tweet.
“I’m highly confident that a president has never intervened in a law-enforcement matter like this before,” Wolf told the paper. “It’s so outside the way the rules were set up.”
Trump's decision to ease up on the Chinese company came at an odd time, given that the administration also sent the message that it might go after European allies if they continue to be involved with Iran.
-Suggestion from source close to TRUMP and MANAFORT that Republican campaign team happy to have Russia as media bogeyman to mask more extensive corrupt business ties to China and other emerging countries
TextReminds of the what the Dossier said about Trump and China:
originally posted by: Zanti Misfit
a reply to: soberbacchus
If the President is Really All for this , you can Bet it will somehow be a Benefit to American Workers in the Long Run . His Motivations are Never Really known to the Public until he Actually Acts ........
originally posted by: toysforadults
a reply to: soberbacchus
Did you just aite the Trump dossier as evidence when the dossier has been proven to be a hoax a dozen times over?
originally posted by: Zanti Misfit
a reply to: soberbacchus
If the President is Really All for this , you can Bet it will somehow be a Benefit to American Workers in the Long Run . His Motivations are Never Really known to the Public until he Actually Acts ........
Can you offer an explanation?
US intelligence officials all say they wouldn't use a Chinese-made Huawei or ZTE phone for fear of spying
originally posted by: gortex
a reply to: soberbacchus
Can you offer an explanation?
Payback for getting him off the hook with North Korea.
originally posted by: toysforadults
a reply to: soberbacchus
The best assumption you can make is that he is doing this as a mission to support diplomacy.
originally posted by: Zanti Misfit
a reply to: soberbacchus
Trying to Figure Out what President Trump will do or not do is a Fool's Errand . You are just going to Wait and See if your Conclusions are Right.....
originally posted by: gortex
a reply to: soberbacchus
Can you offer an explanation?
Payback for getting him off the hook with North Korea.