According to a report by CNBC, the US financial media, US President Trump may be considering relaxing the sanctions on Chinese mobile phone maker ZTE in broader trade negotiations, but for such an idea, White House economic consultant Larry Kudlow However, he insisted that the company cannot "avoid punishment."
Larry Kudlow said a few days ago that they (ZTE) violated the law several times after being warned. Larry Kudlow further pointed out that ZTE's "remedial measures" may include large fines, very strict regulations, the organization of a new board of directors, and a new management team. Larry Kudlow stressed that ZTE cannot avoid punishment and they will not escape impunity.
The U.S. Department of Commerce issued a restraining order in April that prohibited U.S. companies from selling products to ZTE within seven years because ZTE violated the U.S. sanctions ban on Iran. On May 13, President Trump announced that this decision has caused "too much unemployment" in China and promised to let this company return to the industry.
In response, U.S. Secretary of the Treasury Steven Mnuchin stated that Trump had asked him and Commerce Minister Wilbur Ross to intervene in this matter, but did not make any request. Steven Mnuchin added that the implementation of the ban does not mean that ZTE should go bankrupt. Any measures that are being considered are mainly to strengthen US national security.
In an interview with CNBC, Steven Mnuchin pointed out that it is no surprise that the Chinese government asked President Trump to re-examine the ban of ZTE. But unlike economic advisors, Trump acknowledged that there was a link between the ZTE dispute and trade negotiations. Earlier media reports pointed out that unless Washington agrees to ease the sanctions against ZTE, China will not continue trade negotiations with the United States.
However, senior officials at the White House, such as Larry Kudlow, emphasized that ZTE is not related to trade negotiations. Moreover, Steven Mnuchin pointed out recently that including Wilbur Ross, himself and others, this is mainly a law enforcement issue. In response, China ZTE has no relevant response.
(First picture source: zte official website)