ZTE had been facing a seven-year ban on doing business in the U.S. That's because it violated an agreement with the U.S. after it got caught evading sanctions against North Korea and Iran. On Tuesday, Commerce Department spokesman James Rockas confirmed that "no definitive agreement [had] been signed by both parties". The White House didn't respond to a request for comment.
According to Reuters, "the preliminary deal includes a $1 billion fine against ZTE, plus $400 million in escrow to cover any future violations". "They will pay for those people but the people will report to the new chairman", Ross stated.
Last month a source familiar with the talks said that the Trump administration had struck an agreement with ZTE. This would allow the United States to quickly re-instate the ban if ZTE violates the terms of the 10 year agreement.More news: EFL unaffected as Premier League brings in winter break
Washington and Beijing have reached a deal to ease sanctions that brought Chinese smartphone maker ZTE to the brink of collapse, the U.S. said Thursday - a possible indication of progress in fraught trade talks between the world's two largest economies. It also requires ZTE to change its board of directors and executive team in 30 days. As a result, BIS activated a suspended denial order against the company which effectively prohibited them from using USA -built components in their devices and selling their products in the States.
The US government has agreed a deal with Chinese smartphone and telecommunications network equipment manufacturer ZTE that will allow it to continue to trade with American firms.
In this file photo taken on June 2, 2018, Commerce Secretary Wilbur Ross leaves a hotel in Beijing.More news: Bay Area Woman Gored By Bison At Yellowstone National Park
ZTE has pledged to fire four senior employees and discipline 35 others as a result of the guilty verdict it received in a Texas court where one of its subsidiaries are based. Key US components-such as glass from Corning, processors from Qualcomm, and software from Google's Android-were no longer available to the company, meaning it could not make many of its phones. "ZTE misled the Department of Commerce".
On Thursday, he defended the new deal on CNBC, though, saying that "it imposes the most strict compliance that we've ever had on any company, American or foreign" and is meant to deter future wrongdoing.
Under the new agreement, ZTE must also retain a compliance team selected by the Commerce Department for 10 years.More news: Andy Murray takes home a Jaguar I-Pace
A U.S. investigation into ZTE was launched after Reuters reported in 2012 the company had signed contracts to ship hardware and software worth millions of dollars to Iran from some of the best-known usa technology companies.
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