The US government and ZTE had reached a deal last year, that led to the country lifting its export ban on the company. However, the Chinese company may not be out of troubling times just yet. Speaking to FOX News, Peter Navarro, the White House trade advisor, said that ZTE might be shut down if it has one more issue with the United States.
“It’s going to be three strikes you’re out on ZTE. If they do one more additional thing, they will be shut down. We have a bad actor in ZTE...President (Donald Trump) did this as a personal favor to the president of China as a way of showing some good will.” Navarro said while speaking on Fox.
ZTE had been reported to be a national security threat in a Congressional report back in 2012. Because of the export ban earlier, the company couldn’t get its hardware, software and other components into the country. And that would of course hurt its business in the US quite severely.
However, a deal had been worked out by the Donald Trump administration, despite their being push back from a bipartisan group on Capitol Hill. ZTE had to pay a fine of $1 billion and had to placed $400 million in escrow for future fines, while the company was also given 30 days to change its executive team.