Commerce Department Says ZTE Has Paid $1 Billion Fine
ZTE has taken the first step toward resuming operations by forking over $1 billion to the U.S. Department of Commerce. The fine is part of a new agreement the company reached with the government in an attempt to end the destructive ban that prevents it from buying U.S. software and hardware. ZTE still has to put $400 million into escrow and rearrange its top leadership, which are also aspects of the agreement. ZTE will lose the $400 million if it skirts the rules again. The company was punished for breaking a 2017 settlement over illegal sales to Iran and North Korea. ZTE misrepresented to U.S. officials how it handled portions of that earlier settlement. The Commerce Department then banned ZTE from using U.S. products for a period of seven years, which has effectively forced the business to cease operations. The new agreement was brokered by the Trump administration, but it is encountering resistance from members of Congress. It's unclear if or when the Trump administration and Congress will reach a final agreement over the company's fate.
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.
Jul 6, 2018
ZTE has now replaced four of its top leaders (CEO, CFO, CTO, and head of HR) and its entire board of directors, as required by a tentative deal with the U.S. government.
Nov 28, 2018
ZTE has fallen into the U.S. government's crosshairs once again, this time thanks to its involvement with Venezuela.
Jul 20, 2018
Senators have overturned an agreement added to the National Defense Authorization Act, or NDAA, that would have made it more difficult for President Trump to remove the ban instituted against ZTE. Earlier this year, the Commerce Department said ZTE lied about a previous settlement and banned the company from using American parts or software in its phonres for a period of seven years.
Oct 4, 2018
A judge this week says ZTE violated the terms of the probation imposed on the company in March 2017, when it admitted to illegally shipping technology to Iran. ZTE settled with the government then and agreed to a probationary period through 2020.