White House's Navarro Says 'Three Strikes You're Out' For ZTE

WASHINGTON - Chinese technology company ZTE Corp (000063.SZ) will be “shut down” in the United States if it engages in one more bad activity, White House trade adviser Peter Navarro told Fox on Sunday.

ZTE last week agreed to pay a $1 billion fine to the United States and to overhaul its leadership to end a ban that has crippled its key businesses. The ban traces back to a breach of the U.S. embargo on trade with Iran.

Speaking on Fox, Navarro said, “It’s going to be three strikes you’re out on ZTE. If they do one more additional thing, they will be shut down. We have a bad actor in ZTE...President (Donald Trump) did this as a personal favor to the president of China as a way of showing some good will.”

Reuters

Reporting by Michelle Price; Editing by Lisa Shumaker