Commerce Department to Fine ZTE $1 Billion
Updated: added Ross' title
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. Under there terms of the agreement, ZTE will pay a fine of $1 billion and put an additional $400 million into escrow that it will forfeit if it violates the terms. In addition to the fine, ZTE must change its entire board of directors within 30 days. Further, the U.S. will require a compliance team to monitor the company. "I'm very, very happy with this arrangement," said Commerce Department Secretary Wilbur Ross on CNBC. "It is the strictest and largest fine that has ever been brought by the Commerce Department. We are literally embedding a compliance department of our choosing into the company." It's not clear how quickly ZTE will be allowed to get back to work. Analysts believe the company has lost billions of dollars during the shutdown, amidst soured relationships with partners and customers. ZTE was punished for violating the terms of an earlier settlement that was put in place after it was caught selling parts to Iran and North Korea.
Jun 29, 2018
ZTE is nearly ready to install a new board of directors, a step required by the U.S. Department of Commerce if the company wants to end the ban on U.S.
Sep 18, 2018
A new bipartisan bill in the Senate would see ZTE smacked with heavy fines if it were to violate its settlement agreement with the U.S. ZTE reached an accord with the U.S.
Jun 25, 2018
ZTE has taken the first step toward resuming operations by forking over $1 billion to the U.S. Department of Commerce.
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.
May 13, 2018
President Trump took to Twitter this morning to suggest he's looking to recall the Commerce Department's ban against ZTE. "President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast," wrote the President.