ZTE replaces 14 board members in compliance to US deal
Deal meets skepticism
Resident American Enterprise Institute scholar Derek Scissors believes that the shuffle in management won‘t signify real change in the company. As a state-controlled endeavor, ZTE is ultimately directed by the Chinese government – not by its directors. And also, the latter themselves will be joined at the hip with the government.
“The controlling entity here is the Chinese state,” he said. “It’s not who’s on the board.”
Both Democrat and Republican congressmen have stated that ZTE is an ongoing threat to the United States‘ national security, and therefore should not get off so easy. ZTE is the second largest telecom equipment manufacturer in China.
The Senate passed an annual defense bill which included the undoing of President Trump‘s deal with the company. Trump, on the other hand, is using ZTE‘s survival as a bargaining chip to use in the broader game board of the ongoing trade dispute with the its government.
This will be the first week of tariff enactment on Chinese imported goods. It will affect trade flow to the tune of an estimated $34 billion.