ZTE to reopen after $1 billion fine, new leadership

ZTE to reopen after $1 billion fine, new leadership

ZTE to reopen after $1 billion fine, new leadership

The Trump administration has walked a fine line, stressing that any ZTE deal is separate from ongoing trade negotiations with China.

"Today, BIS is imposing the largest penalty it has ever levied and requiring that ZTE adopt unprecedented compliance measures", said Secretary of Commerce Wilbur Ross.

The deal will force ZTE to pay an additional $1 billion fine and place $400 million in escrow in the event the company violates sanctions again.

The compliance team will report jointly to the new ZTE chairman and the US Commerce Department. Ross, speaking on CNBC today, said that a compliance team picked by the us will be embedded at ZTE. Should the Chinese company break any of the USA export control laws during this period, the BIS can activate the suspended denial order which would, once again, disallow them from doing business with US companies in any capacity. Although not specifically stated, the announcement implies that ZTE will no longer be banned from selling technology to other countries and that American companies will no longer be banned from selling components to ZTE, either.

DUSTIN DWYER, BYLINE: There had been word in recent days of a possible deal between ZTE and USA regulators. In March 2017, ZTE agreed to pay that fine and also to a seven-year suspended denial of export privileges, which would go into effect if ZTE broke the agreement during that time. The company announced it was shutting down just weeks after the ban was announced.

French Open glance: Keys, Stephens resume rivalry in Paris
She said: "I think [playing on clay] was still kind of a confusion in the head up until about a week ago (smiling)". She will face 10th-seeded Sloane Stephens , who had little trouble beating No. 14 Daria Kasatkina, 6-3, 6-1.

The U.S. government launched an investigation into ZTE after Reuters reported in 2012 the company had signed contracts to ship hardware and software worth millions of dollars to Iran from some of the best-known U.S. technology companies.

ZTE's survival has been a topic of discussion in high-level US-China trade talks. So the USA went nuclear on ZTE, imposing a seven-year ban on United States companies selling technology to the Chinese firm. The Pentagon earlier this month ordered retail outlets on USA military bases to remove from the shelves smartphones made by the two companies.

Regardless of those talks, the Trump administration is facing a deeply hostile reaction from Congress, where there is bipartisan opposition to the deal.

"The total deal is $1.4 billion".

But early this year, the USA government discovered that ZTE had not followed through on its promise. This includes once again being able to receive Qualcomm SoCs and the Android OS for their smartphones, along with the numerous components used in their networking gear.

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