U.S. President Donald Trump suggested imposing a fine of more than $1 billion on ZTE Corp. and revamping its management, though he also denied that his administration had reached a deal with Beijing to ease up on the Chinese telecom company.
Speaking to reporters at the White House, Trump said he was asked by Chinese President Xi Jinping to look into ZTE's case, and asserted that U.S. export restrictions on the company are hurting many American businesses.
"[T]hey can pay a big price without necessarily damaging all of these American companies," Trump said before a meeting with South Korean President Moon Jae-in.
"So what I envision is a very large fine of more than a billion dollars. Could be a billion-three. I envision a new management, a new board, and very, very strict security rules," Trump added.
Trump said he also foresees ZTE buying a large percentage of parts and equipment from U.S. companies.
In April, the U.S. Department of Commerce slapped ZTE with a seven-year ban that prohibits businesses and individuals in the U.S. from selling components to the company, alleging that it had violated international sanctions and repeatedly made false statements.
ZTE said earlier this month that it had ceased its major operating activities as a result of the U.S. move. Trump previously tweeted that he was working with Xi to give ZTE "a way to get back into business, fast."
"But there is no deal. We will see what happens ... We're discussing various deals," Trump said when asked about the trade talks with China and ZTE.
