According to an anonymous people familiar with the matter said that the Trump organization may soon ask for $1.7 billion penalties from ZTE as the company hopes to rebuff and fix control over the Chinese telecommunications organization before allowing it back into the business.
If ZTE has to pay this amount to the US government, then this Chinese giant is estimated to have a loss around $3 billion as around 25 to 30% of the hardware it uses are supplied by US firms. However, this is certainly a situation ZTE is seeking for as because of the initial 7-year boycott would hurt the company in a number of ways. Apart from the fine, the US government will also ask ZTE to supplant its top managerial staff, official group and contract a consistence temporary worker to administer the organization’s activities.
The source said that the Chinese tech giant is expecting to pay much less as about $1 billion but it would be asked to deposit $400 million in escrow in a US-based bank after all.
However, the funny thing is that a few people acquainted with the issue said that ZTE may come in a deal with the US government like if the US government consents to settle things with ZTE then China will purchase more American-made agricultural products.
By the way, neither governments from the Commerce Department nor ZTE immediately responded to a request for comment when contacted.
