Chinese tech manufacturer ZTE cannot begin buying parts from United States companies until it pays a total of $1.4 billion in penalties.
That was a requirement in a deal between the company and the US Commerce Department that modified punishments against ZTE for its breach of trade sanctions and a prior settlement. It is still under a 7-year imports ban until it pays a $1 billion fine to the government agency and forwards an additional $400 million to a US escrow account. As previously reported, the company must also hire new boards of directors for two of its corporate bodies within 30 days as well as install an American compliance monitor in addition to the one that was hired after the first settlement.
ZTE had ceased most operations after the ban took effect in April, a move that it has projected would produce a loss of $3.1 billion. US President Donald Trump had tweeted weeks into the morass that he would work with Chinese President Xi Jinping to resolve the ban, an overture that went over poorly with national intelligence officials and Congress.
White House trade adviser Peter Navarro characterized Trump’s aid to ZTE as what Reuters calls a “personal favor” to Xi.