For breaking an agreement that was put in place after it pleaded guilty to violating USA sanctions in 2017, the Department of Commerce banned all United States businesses from selling components to Chinese manufacturer ZTE for seven years in April. Under the preliminary terms, ZTE will pay $1 billion in fines and place $400 million in escrow to guard against future violations. That settlement also reportedly doesn't include the $361 million ZTE already paid to the Commerce Department.
ZTE ceased major operations since the seven-year ban was imposed on the company in April for breaking a 2017 agreement that was reached after it was caught illegally shipping goods to Iran and North Korea.
In mid-April, the United States Department of Commerce slapped ZTE with a Denial Order over an issue it had with us sanctions in 2017.
The ban in effect nearly destroyed ZTE as it now relies on many components from American companies. "It would also allow unfettered site visits to verify that USA components are being used as claimed by the company", Reuters stated. A ZTE spokesman couldn't be reached for comment.More news: Nabil Fekir's Agent Confirms Reds' Interest
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ZTE has reached a preliminary consensus with the U.S. commerce department on how to resolve the ban, though nothing definitive has been signed and both parties still have to go through the terms of any settlement item-by-item, a person close to ZTE told the Post, asking not to be identified as the information is private. In exchange, ZTE would have to pay a total of $1.7 billion in penalties, according to the the report. The company relies on USA -made components for many of its products, and also sells many of those products to US customers.
While the details of last weekend's deal have yet to be revealed, it is understood that ZTE has promised to replace its board and executive team in 30 days.
A man walks past a building with the ZTE logos in Beijing in a photo taken last month.
Regardless of those talks, the Trump administration is facing a deeply hostile reaction from Congress, where there is bipartisan opposition to the deal.