‘ZTE has concluded preliminary agreement with VS for resuming activities’

Jun

6

2018

According to news agency Reuters, the Chinese smartphone maker ZTE has signed a preliminary agreement with the American authorities, which allows the company to resume its activities.

According to sources that would be familiar with the deal, an agreement in principle has been concluded with which ZTE can resume its business activities. Under the agreement, ZTE can get back to work after payment of a $ 1 billion fine and a $ 400 million deposit. The latter is intended to cover any new, future violations.

ZTE would also replace its management and management and allow inspections. A spokesman for the American Commerce Department, the authority that monitors economic sanctions, said Tuesday that no definitive agreement has yet been signed by both parties. ZTE did not want to comment.

In April, the US banned US companies from providing components to ZTE. The smartphone maker was therefore forced to stop the work . The trade ban was related to US accusations that ZTE had provided technology to Iran and North Korea, which would have circumvented US sanctions.

In the course of May, it became known that US President Trump is working with Chinese president Xi Jinping on a plan to get ZTE back into operation . The company would have lost at least $ 3.1 billion by the sanctions.

However, it remains to be seen whether a possible agreement will stand, as there is quite a bit of criticism of Trumps’ apparent striving to help ZTE get back on its feet again. American Congressmen of both parties think that Trump seems to bow to Chinese pressure and they can basically block the deal.

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