ZTE must change its management to get US reprieve says Larry Kudlow, White House economic adviser
Kudlow said that ‘the Chinese government has asked for a bit of relief on the remedy. Doesn’t mean there won’t be a remedy; there’ll be a very strong remedy’
Chinese telecoms company ZTE will have to change its management, including by possibly appointing new board members, to win a reprieve from US sanctions that shut it off from key suppliers, the director of the White House National Economic Council said.
“We’re not talking about letting them off scot-free by any stretch,” Larry Kudlow, US President Donald Trump’s top economic adviser, said on Friday in an interview on Fox Business Network.
“Commerce Secretary Wilbur Ross is having a second look at remedies. If there are any structural changes in their case they will be very harsh: change of management. Change of board. Change of everything.”
Trump on Sunday ordered the Commerce Department to get ZTE back into business, weeks after the agency cut the company off from US suppliers as punishment for what Ross described as “egregious” violations of sanctions against trade with Iran. Trump said in a tweet “too many jobs in China lost” because of the Commerce Department action.
His instructions on ZTE were seen as a major reversal by a president who has talked tough for years about Chinese trade practices.