Under the deal, the US stands to collect up to an excess of $1.7 billion from the company in current and past paid fines, according to sources who spoke with Reuters. ZTE depends on US components, including Qualcomm Inc. chips, to build its smartphones and networking equipment. ZTE declined to comment.
Now, ZTE has reportedly signed an agreement with the USA, but apparently the Commerce Department has not yet signed.
The Commerce Department plans to amend its settlement agreement from previous year and count the $361 million ZTE paid as a part of that, allowing the U.S.to claim a total penalty of as much as $1.7 billion, the sources told Reuters. The agreement is also expected to call for other concessions from ZTE, including new board members and increased USA oversight of its business.
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US President Donald Trump planned to meet with his trade advisers on Tuesday to discuss China's offer to import an extra $70 billion (roughly Rs. 4.7 lakh crores) of American goods over a year as a way to defuse a potential trade war between the world's two largest economies. This means that they could be fined up to $1.7 billion in total. The move will allow the company to get back into the business.
In addition to the money it will have to pay, Reuters says ZTE must replace its current board members and executive team within 30 days as part of the agreement, and also allow for unlimited access to its sites to prove that the hardware and software made in the USA are being used correctly.
That was a serious problem for ZTE because the company is heavily dependent on United States components for its smartphone business. "The president who roared like a lion is governing like a lamb when it comes to China", he tweeted, calling for Congress to take action. This deal has been highly controversial, as a number of members of the U.S. Senate, including lawmakers from both the Republican and Democratic parties, have stated ZTE's phones are a major security threat, claiming they could be used by the Chinese government to spy on U.S. citizens.
As part of a new agreement, the sources said, ZTE will retain another compliance contractor in addition to the three-year court-appointed monitor imposed by the plea agreement. I know, that's a mouthful of deceit and shady sh*t from ZTE, hence the reason they were given a hefty ban.