A deal has been reached, and plans are underway to lift the U.S. export ban placed on ZTE, that has practically put the Chinese firm out of business, according to a senior U.S. congressional aide.
As you might recall, ZTE was placed on a seven year export ban by the U.S. Department of Commerce after it violated its U.S. sanctions by selling goods and services to Iran and not sticking to its own end of the bargain. The ban prevented the Chinese phone and network equipment manufacturer from sourcing hardware, software and components from the states.
In the new deal, however, ZTE has agreed to a substantial fine reportedly in tune of $1.3 billion, and will shake up its management team. In addition, U.S. compliance officers will be installed inside the company. The ban was originally supposed to run to March 2025.
In 2012, a Congressional Report called ZTE and Huawei threats to National Security and suggested that their products be banned from the U.S. For the first quarter of this year, ZTE was the fourth largest smartphone brand in the U.S. based on sales.
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