ZTE has reportedly signed a preliminary agreement with the US allowing for the ban on its operations in the country to be lifted.
The deal has not been confirmed by either side, but according to Reuters, which cites anonymous sources familiar with the matter, the agreement is in line with what was reported last week.
That means ZTE will have to pay a fine of at least $1 billion. Another $400 will be put in escrow to 'cover future violations'. Then there's the settlement agreement from 2017, which saw ZTE pay $361 million in fines, so the total amount is expected to hit $1.7bn.
It seems as it's the latter, this ammended settlement, that's holding the agreement from not going public just yet.
Besides the fine, ZTE will have to replace its executives, as well, and China will allegedly have to import more US-produced agriculture products.
Earlier this year, the United States banned its companies from doing business with ZTE for seven years, because the Chinese telecoms manufacturer violated an agreement it had with the US.
Under the agreement, ZTE was not allowed to export its product, whose parts were made by US companies, into countries under US embargo – North Korea and Iran.
The ban has basically put ZTE out of business. The company announced it literally had nothing to do after the ban, and employees were saying they'd show up for work, but could not do any work.
Image Credit: Flickr / Kārlis Dambrāns