Thursday, 7 June 2018

US reaches deal with China's ZTE, says Commerce Secretary Wilbur Ross

The US has reached a deal with Chinese tech firm ZTE that will remove a ban that prevented the company from buying parts from US suppliers, Commerce Secretary Wilbur Ross has said.

The deal will involve ZTE paying a $1bn penalty and hiring a compliance team chosen by the US.
ZTE will also be required to replace its management board within 30 days.

The US had blocked ZTE's access to American suppliers, saying it had violated a sanctions settlement.

China's President Xi Jinping asked the US to reconsider that punishment, which forced ZTE, the world's fourth-largest mobile phone maker and a major employer in China, to suspend major operations.
Mr Ross said the fine was the largest penalty ever levied by Commerce's Bureau of Industry and Security and pledged to continue monitoring ZTE's behaviour.

The new deal will also see ZTE paying $400m into a holding account to insure against future violations.

BBC     News.

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