US Reaches Deal With China's ZTE - Secretary of Commerce

China's ZTE said it ceased major operations last month due to the ban

US senators planned legislation on Thursday that would roll back an agreement President Donald Trump's administration announced to ease sanctions on Chinese telecommunications company ZTE Corp. This comes on top of the $361 million ZTE had already paid under the original settlement.

According to Mr. Ross, speaking on CNBC, ZTE must change its management and its board, pay the fine, and put $400 million in escrow, which it will forfeit if it violates us sanctions on North Korea and Iran. Commerce Department spokesman James Rockas told Reuters on Tuesday that "no definitive agreement has been signed by both parties".

ZTE's resuscitation with USA help has met strong resistance in Congress, where both Democrats and Trump's fellow Republicans have accused him of bowing to pressure from Beijing to help a company that has been labelled a threat to United States national security. The U.S. threatened sanctions, but ZTE promised to change its practices and punish the executives responsible for its misconduct.

"ZTE made false statements to the US Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation", Ross said in April, when his department reactivated the sanctions.

Ross also said that the company will have to replace its entire management and board of directors as part of the deal.

Meanwhile, the South China Morning Post reported Wednesday that ZTE has been sending out letters of reprimand to 35 current and former employees who were associated with the sanction-busting, and is even "seeking to claw back bonuses from those who have left the company". Gogo Wireless was one of the first USA companies to speak publicly about the potential impact of the ZTE ban.

U.S. Secretary of Commerce Wilbur Ross announced that ZTE will pay a $1 billion fine for its recent violations. Key US components-such as glass from Corning, processors from Qualcomm, and software from Google's Android-were no longer available to the company, meaning it could not make many of its phones.

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

The company will also need to put $400 million into escrow, money that will be reserved in case ZTE violates the new agreement. They claim they underestimated how important USA technology was to ZTE's products.

ZTE supplier Oclaro Inc was up 1.3 percent while Acacia Communications Inc was down 0.6 percent.

Shares in NXP Semiconductors NV rose 3.8 per cent in early trading in NY after news of the ZTE deal was announced.

Related news:

Hot News

isis-killer-beheading-video-story-top Manafort attempted to tamper with witnesses, prosecutors on Mueller's team say
Jun 06, 2018 - 04:31
Manafort has pleaded not guilty to all charges, which includes conspiracy against the US , money laundering, bank and wire fraud. Manafort is innocent and nothing about this latest allegation changes our defense". "We will do our talking in court".

isis-killer-beheading-video-story-top Trudeau, G7 leaders to confront Trump on tariffs in opening G7 meeting
Jun 06, 2018 - 04:22
Speaking after the meeting, Le Maire said the European Union was poised to take counter-measures against the new US tariffs. On Monday, Canada's building trades union said they back the decision to retaliate against the United States.

isis-killer-beheading-video-story-top French Open 2018 Nadal, Halep aim pre-quarterfinal berths
Jun 06, 2018 - 04:14
It promises to be a hard-hitting match, with big serves and booming forehands, when Isner meets del Potro in the fourth round. Croatia's Marin Cilic , the third seed, came through with no fuss 6-3 6-2 6-4 against American Steve Johnson .

isis-killer-beheading-video-story-top Melania Trump Speaks Out on Recent Absence, Calls Out Media for Speculating
Jun 06, 2018 - 03:52
Meanwhile, another tweet started doing the rounds online.in which every first letter of, her sentences spelled the word "HELP". Trump remained hospitalized for five nights following the procedure, returning to the White House on May 19.

isis-killer-beheading-video-story-top Singapore designates special zone for Trump-Kim summit
Jun 06, 2018 - 03:51
But the North has given no clear hints about how far it could go toward meeting USA demands to dismantle its nuclear program. For Kim, recognition of his rule and nuclear power status of North Korea is the prime objective.

isis-killer-beheading-video-story-top Israel has carried out air strikes on Hamas sites
Jun 04, 2018 - 23:33
The Israeli military controls most the territory of the West Bank, where Israeli settlements have expanded over the years. Since March 30, Gazans have protested at the Israeli border, demanding the return of land taken during the 1948 war.

isis-killer-beheading-video-story-top Volcano eruption in Central America kills 25 injures hundreds
Jun 04, 2018 - 23:28
Photos and videos posted on social media showed bodies strewn atop the lava flow, which was around 5 miles long at one point. Mr de Leon a change in wind was to blame for thevolcanic ash falling on parts of the city.

isis-killer-beheading-video-story-top Tristan Thompson Walks Out of Interview Over Stephen Curry Question
Jun 04, 2018 - 23:27
Trying to stop them along while two other players combine to shoot a ideal 11-for-11 from the field is near impossible. For one, the Warriors were outrebounded 53-38 in Game 1, and McGee does a good job of keeping big men off the glass.

isis-killer-beheading-video-story-top Djokovic advances at French Open
Jun 04, 2018 - 23:15
World number 72 Marco Cecchinato shocked eighth seed David Goffin to set up a French Open quarter-final against Novak Djokovic . US Open champion Sloane Stephens cruised past Estonian Anett Kontaveit 6-0, 6-2 to book a last-eight spot for the first time.