ZTE to reopen after $1 billion fine, new leadership

ZTE will reportedly pay total of $1.7B to lift US Commerce Department ban

Under the new agreement, ZTE must also retain a compliance team selected by the Commerce Department for 10 years.

The Trump administration reached a deal to ease sanctions on Chinese tech giant ZTE, Commerce Secretary Wilbur Ross said.

Back in April, the United States government announced a complete and total ban of any U.S. components manufacturers from selling to Chinese telecom and handset giant, ZTE (HKG:0763). Reuters reports U.S Commerce Department ban on ZTE is likely to be lifted although " no definitive agreement has been signed by both parties" just yet.

The fine announced today comes on top of $892 million ZTE has already paid for breaking USA sanctions by selling equipment to North Korea and Iran.

Ross called ZTE's actions a "world-class embarrassment", and said that the US deal with ZTE imposes the "most strict" compliance ever on any company.

Critics like senator Marco Rubio have criticized the Trump administration's willingness to cut a deal with ZTE, saying it undercuts United States national security.

Under the new agreement, ZTE will have to pay a $1 billion fine and replace its entire board of directors and senior leadership.

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.

Senate Majority Leader Charles E. Schumer called for Congress to reverse the decision, which is unlikely.




Eric Altbach, a former deputy assistant U.S. Trade Representative who spent years negotiating with the Chinese, said the U.S. may have agreed to go easier on ZTE in exchange for China approving an American company's acquisition of a Chinese firm. These were chips and components made in America that ZTE uses to make its radio equipment.

ZTE did not immediately respond to requests for comment. It paid $890 million in fines. Post calculations of U.S. parts in the company's products would also have to be on a public website.

Earlier, Wilbur Ross stated that the United States was looking at alternatives to the debilitating sanctions threatening the survival of ZTE. "Export control and sanctions laws should not be negotiable, because fidelity to the rule of law is a key part of what distinguishes the US from a country like China that is ruled by a Communist dictatorship".

The ZTE deal comes after weeks of tense negotiations between the Trump administration and the Chinese government. Specifically, Bloomberg reported that the USA might lift the export ban if Chinese regulators approve Qualcomm's $43 billion bid for NXP. Overall this an unprecedented agreement with the BIS in both the size of the fines and the overall scope of the compliance monitoring.

"It doesn't really move the ball forward on the deeper structural issues in U.S".

Qualcomm Chief Executive Officer Steven Mollenkopf said on Thursday he hoped the ZTE agreement would pave the way for the NXP approval.

A sign of ZTE Corp is pictured at its service centre in Hangzhou, Zhejiang province, China May 14, 2018.

Shares of Acacia and Oclaro extended their gains on Tuesday in heavy trading after news of the preliminary deal, ending up 1.7 percent and 1.8 percent, respectively.

Related news:

Hot News

isis-killer-beheading-video-story-top Iran’s Soccer Team First To Arrive In Russia For World Cup
Jun 08, 2018 - 03:02
Teams are split into eight groups for the first stage, with each team playing every other team in the group. And with Manchester United reportedly interested, his performances will be closely monitored.

isis-killer-beheading-video-story-top Facebook apologizes for mistakenly exposing up to 14M users’ posts
Jun 08, 2018 - 02:56
The mistake happened, that company said, when it was building a new way for people to share "featured items" on their profiles. One of Facebook's key privacy features is that it lets people decide an audience for their posts.

isis-killer-beheading-video-story-top Scott qualifies for U.S. Open, extends majors streak
Jun 08, 2018 - 02:40
BREVARD COUNTY, FLORIDA- Former Eastern Florida State College men's golfer Michael "Mickey" DeMorat has qualified for the U.S. After two rounds, he was among nine players tied at seven-under-par looking for one of the the final three spots.

isis-killer-beheading-video-story-top Kevin Durant Held Back from CLE Hecklers At Team Hotel
Jun 08, 2018 - 01:25
The Golden State Warriors can beat the Cavs playing their C game and only need one of their four stars to play well. Just to put a dagger in them like that, that was a huge shot. "We just try to do whatever it takes to get the W.

isis-killer-beheading-video-story-top African Pastor killed by deadly 20ft crocodile while baptising church worshippers
Jun 07, 2018 - 02:01
A Protestant pastor has been killed by a crocodile during a baptism ceremony in an Ethiopian lake, the BBC has reported. It is believed the reptile that killed Pastor Docho was a Nile Crocodile which can grow up to six metres (20ft) long.

isis-killer-beheading-video-story-top French Open 2018: Simona Halep beats Angelique Kerber to reach semi-final
Jun 07, 2018 - 02:00
Top-ranked Simona Halep has leveled at one set-all in her French Open quarterfinal against Angelique Kerber of Germany. But they hadn't played since 2014, back before Muguruza was as confident and successful as she is these days.

isis-killer-beheading-video-story-top Democrats Breathe Sigh Of Relief After Tuesday's Primaries
Jun 07, 2018 - 01:37
Iowa Democrats have seen their power and relevance wane in recent years, and are hoping to claw their way back into power in 2018. How Noem performs could show whether or not even being part of Congress is a kiss of death with GOP primary voters.

isis-killer-beheading-video-story-top Putin praises ‘mature’ Donald Trump over North Korea summit
Jun 07, 2018 - 01:33
The Trump administration, she said, is actively preparing for the summit between the US President and the North Korean leader. South Korean President Moon Jae-in has said Trump deserves a Nobel Peace Prize for his efforts to end the standoff.

isis-killer-beheading-video-story-top Resilient Ariya Jutanugarn bounces back for US Women's Open title
Jun 07, 2018 - 01:33
Ariya Jutanugarn of Thailand plays her second shot on the 10th hole during the thrid round of the 2018 U.S. She won the Women's British Open in 2016 and is coming off a victory at the Kingsmill Championship in May.

isis-killer-beheading-video-story-top New Han Solo Season Trailer for Star Wars Battlefront II
Jun 07, 2018 - 01:32
The Rose Tico description on the Star Wars "Wookieepedia" website was altered to feature offensive, racist language. Trans' Instagram page is still visible, along with the actress's inspiring bio line, "Afraid, but doing it anyway".

isis-killer-beheading-video-story-top Hitman 2 Leaked Ahead of Reveal Scheduled For Later This Week
Jun 06, 2018 - 12:52
The official Hitman account tweeted out a little teaser yesterday, promising something to be revealed on June 7. Another tweet which sparked more excitement, this time from WB Games, pictured a race auto .

isis-killer-beheading-video-story-top Mission: Impossible - Fallout (2018) - HALO Jump Stunt Behind The Scenes - Paramount Pictures
Jun 06, 2018 - 12:51
The Hollywood actor will take us on a rollicking ride of high voltage thrill and action with Mission Impossible: Fallout . I will rue the day when Tom Cruise is too old to pull stunts off like this.

isis-killer-beheading-video-story-top [H]ardOCP: Google Unceremoniously Removes the Tablet Section from Official Android Website
Jun 06, 2018 - 12:51
Nevertheless, Google is not ready to give up single-purpose tablets just yet, albeit it only has three slates in its inventory. If one tries to access the tablet page now, they will be redirected to the home page of the Android website.

isis-killer-beheading-video-story-top Dog found dead in Delta Air Lines carrier during layover near Detroit
Jun 06, 2018 - 12:49
Delta said it's investigating the situation and has been working with Dellegrazie to support him. Even after Alejandro was offered to be given back to us, there was a long wait.

isis-killer-beheading-video-story-top Gmail's major redesign will be available to all in July
Jun 06, 2018 - 12:47
Considering most people seem to like the new interface , Google has chose to move everyone to the latest version starting in July. This can house Google Calendar, Google Keep and Google Tasks all in an easily-accessed bar.