Tuesday, 22 May 2018

The cloudy future of ZTE


The issue of ZTE has been at the centre of the negotiation between China and the US. Though the US President, Trump, tweeted last week that he would allow ZTE to continue its business, the US Republican Party seems unhappy about the president’s U-turn on the ZTE issue. The problem of ZTE is its businesses with North Korea and Iran which violate the US sanction.
China said that it would cut its import duty on the US cars to 15 per cent from 25 per cent on July 1st (according to the official Xinhua news service), though this duty level is still higher than the international standards. By proposing such duty cut, China does not only put something on the table for bargaining, but also make the car industry’s lobbyists be on its side to persuade the Washington politicians to lift the sanction on ZTE.
The probability for the sanction to be lifted is higher than the probability for the sanction to continue; however, there is no certainty at the moment.

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