According to a published report, ZTE will be required to pay a “substantial fine,” place U.S. compliance officers at the company and change its management team.
The Trump administration told congressional lawmakers that the U.S. government reached a deal with China to put Chinese telecommunications company ZTE “back in business,” according to a Reuters article published Friday afternoon.
The story cited a “senior congressional aide” as stating that the reported deal requires the company, which sources some components for the phones it assembles from U.S. companies, including Qualcomm, to pay a “substantial fine,” place U.S. compliance officers at the company and change its management team.
Only after that would the Commerce Department lift an order in place since April that prohibits U.S. entities from exporting to ZTE, according to the article.
The Commerce Department announced on April 16 it had lifted the suspension of a denial of export privileges for U.S. companies to ZTE after U.S. officials found ZTE employees made false statements to the Bureau of Industry and Security in 2016 and 2017.
ZTE in March 2017 agreed to a combined civil and criminal penalty and forfeiture of $1.19 billion after the U.S. government found that the company had illegally shipped telecommunications equipment to Iran and North Korea, making false statements and obstructing justice.
U.S., China reportedly make ZTE deal
