U.S. Department of Commerce announced on June 9 that it has reached a new settlement agreement with China’s ZTE Corporation. It issued a statement on the same day informing that ZTE and its affiliates have agreed to pay the fines and take compliance measures to replace the US Commerce Department’s previous ban on the company’s procurement of parts and components from US suppliers. The statement pointed out that ZTE Corporation will pay a fine of $1 billion and will prepare another $400 as backup payment for future violations and the US Department of Commerce will remove the ban from ZTE Corporation.
As one of the world’s leading provider of telecommunication, ZTE has maintained a very good cooperation with numerous US suppliers and has provided nearly around 130,000 tech-related jobs in the United States. Experts pointed out that because ZTE has closely cooperated with many U.S. companies, the U.S. government’s export control measures for ZTE will cause losses to suppliers such as Qualcomm, Intel, and ZTE in the United States.
Read Also: Why is Huawei banned in the United States
If we look back, US announced a 7-year export ban on ZTE from April. This ban could severely affect ZTE and could even have been the downfall of ZTE. ZTE has finally brought the results in its favor after a two-month long negotiation. The settlement was not easy for ZTE as it had the to pay a fine of $1 billion but ZTE can breathe a sigh of relief at the moment. After the settlement is completed, ZTE will be able to use the telecommunications products from the USA. Moreover, it can continue its cooperation with other US-based corporations.