The U.S. has agreed to lift the seven-year ban on ZTE Corporation, a China based telecom equipment & systems firm, post its discussions with China. The Chinese authorities reiterated the move of the U.S. administration by declaring a cut in tariffs on car imports from the U.S., thereby further easing the trade conflicts between the two superpowers. It has been projected that the move could result in China removing import duties on U.S. agricultural goods as well as purchasing of the U.S. technology.
Sources cite that the lifting of the ban can include major changes in the management of ZTE, its board of directors, and levying of fines. For the record, ZTE was forced to halt its key business operations after it was found violating the U.S. laws in 2016. It has also been claimed that the Chinese telecom equipment firm had sold the U.S. technology to Iran, that was against the U.S. laws. This violation of breaching sanctions resulted in an agreement that forced ZTE to pay nearly USD 1.2 billion and reprimand its staff involved in the act of violation as per the U.S. Justice Department judgment.
Reportedly, ZTE had not taken any action against the culprits and had paid full bonuses to those involved in illegal activities. Additionally, it was found that the firm did not even rebuke the employees and had lied to the U.S. authorities, leading to the infamous seven-year ban. However, post the lifting of the ban, China has assured the U.S. administrators of importing more energy & farm products from the country.
The Chinese authorities have also assured that the country will reduce the tariffs on imported goods to 15% from 25% from 1st July this year. The decision is forecast to augment the business of the car manufacturers that deliver high-end cars in the Asian country. Furthermore, tariffs on automotive components are predicted to come down to 6% from 10% as well.