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.
After promising to get tough on Iran, Donald Trump caves as meekly as Barack Obama by waving the white flag to China on ZTE sanctions.
Even if Donald Trump gets out of the Iran deal, what is it going to matter? Any country in the world can funnel technology to Iran through China, and Donald Trump will punk out and give them a pass for it.
ZTE is a Chinese firm tied to their military aerospace and signals intelligence industries. Their board’s senior members are stacked with members of state-run military firms. ZTE defied global Iran sanctions. When they were caught, they refused to take any corrective actions. So the US Government slapped them with 7 years of trade sanctions.
The Chinese ordered Donald Trump to jump, and his answer was “How high?” He is complying with everything they demanded of him. He’s been whipped. Now Chinese firms can defy US sanctions at any time, and the Trump administration is powerless to stop it.
Why is Trump taking orders from the Communists? It’s reasonable to speculate they’re blackmailing him with the leverage of North Korea, but only time will tell if that’s how they have a hold on him.
Marco Rubio took to Twitter this morning to call the President’s statements on ZTE “crazy,” but the situation is actually worse than he lets on.
Rubio directly quoted Donald Trump’s statement and didn’t hold back:
Yes, it is “crazy” to allow ZTE free access to our technology. But it understates the case to say that ZTE “can be forced to act as a tool Chinese espionage”. The company is rigged to be a tool of espionage.
Take a look at the ZTE Board of Directors. Vice Chairman Jianheng Zhang is tied to CASIC, a state-run military contractor. Vice Chairman Jubao Luan, same. While Chairman Yimin Yin is allowed to have his title, the state military-political apparatus is there to watch him, and make sure ZTE is there to service the state whenever necessary.
Other board members are tied to the government in other ways, such as the People’s Political Consultative Congresses, which are organs for the Communist Party of China to direct policy.
This is the corporation Donald Trump is directing the Commerce Department to support. It really is crazy.
Chinese manufacturer ZTE got caught violating Iran sanctions, and was slapped with a severe export ban as a result. China is lobbying the Trump team to ease up.
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