(From The Washington Examiner)
The U.S. government has reached an agreement with ZTE Corp. to lift an order imposed in April that would have banned any U.S. business from selling products to the Chinese-owned company for seven years, Commerce Secretary Wilbur Ross announced on Thursday.
Ross said the company agreed to a fine of $1.4 billion, but $400 million of that amount will be placed into escrow as collateral against potential future violations. ZTE will also replace its entire management team and board of directors, as well as create a new compliance department within the company that will report to both the chairman as well as the Commerce Department.
The Commerce Department’s national security bureau imposed the ban in April after it found that ZTE failed to comply with a settlement agreement reached with the company after it violated Iran sanctions. Soon after, President Trump said the U.S. and China were negotiating terms to avoid that outcome.