ZTE, a “private” company whose board is controlled by a Chinese state-owned military contractor, wants access to US companies for tech transfers. Trump may allow it, for a one time payment.
The Commerce Department already said enough is enough for ZTE. After illegally violating Iran sanctions, and then refusing to do anything about preventing that from happening again, ZTE was punished. ZTE was banned from buying from the US market for 7 years.
When that punishment happened, China had a fit. Not just ZTE, but the Chinese government. They immediately began applying strong diplomatic pressure to Trump. Some speculate that threats to sink the North Korea deal were included in this, but we have no way of confirming or rejecting that theory right now.
We do know the pressure happened, and we do know that Donald Trump folded like a wet newspaper. He demanded the FTC give in and let ZTE back in the country just days after the punishment was applied. He keeps denying that a secret deal is being made with China, but the reports keep on flying.
The newest claim is that Trump will allow ZTE to continue transferring technology to the Chinese military contractors for a $1.7 billion fine. And I do mean it, that this is all about the Chinese military. the government ultimately controls ZTE in a way that actual free market companies are not controlled by the government.
Real free market companies are controlled by a board elected by shareholders. ZTE’s board is dominated by the state, via representatives of state-owned military-industrial “businesses.” ZTE is a trojan horse, and if Trump makes a deal, it’s America who loses.
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