Commerce Department Agrees to Let ZTE Get Back to Business
The Trump administration has handed ZTE an olive branch, according to sources cited by the New York Times and Reuters. The Commerce Department has brokered a deal that will allow ZTE to resume operations as long as it agrees to pay a substantial fine, submit to American compliance officers, and wholly change is management team. If ZTE abides by these terms, the Commerce Department will lift its ban preventing U.S. companies from supplying ZTE with hardware and software. The Commerce Department socked ZTE with the ban last month after it discovered the company misrepresented actions concerning a previous settlement agreement. The Trump administration has been back-and-forth concerning ZTE’s fate over the last week and did not confirm the details of its recent trade meetings with China. Some U.S. lawmakers are not convinced ZTE should be allowed to resume operations and have been vocal in their opposition to any deal that sees ZTE allowed to buy U.S. technology.
May 22, 2018
The U.S. and China are near to reaching a deal that would offer ZTE reprieve from the seven-year ban enacted against it by the Commerce Department.
Jun 2, 2018
ZTE may have to agree to a heavy fine and sweeping management changes if it wants to resume operations. The Trump administration is prepared to levy up to $1.7 billion in fines against the company to punish it for violating the terms of an earlier settlement.
Mar 7, 2017
ZTE today said it has agreed to pay the U.S. government significant financial penalties for exporting technology to Iran in violation of sanctions against the country.
Jun 7, 2018
The Commerce Department has reached a deal with ZTE that will get the company out from under a ban on U.S. parts and software.