From CNET: The US appears to have struck a deal with Chinese telecom giant ZTE, resolving a controversy that had put the Chinese telecom giant in peril.
The deal includes a $1 billion penalty against ZTE, and a compliance team, chosen by the US, will be embedded at the company, Commerce Secretary Wilbur Ross told CNBC Thursday morning. It also requires ZTE to change its board of directors and executive team in 30 days.
"At about 6 a.m. this morning, we executed a definitive agreement with ZTE. And that brings to a conclusion this phase of the development with them," Ross said.
Neither the Commerce Department, the White House nor ZTE immediately responded to requests for comment.
On Tuesday, it was reported that the company agreed in principle to a settlement that would lift the seven-year Commerce Department ban preventing US companies from doing business with ZTE.
That report said ZTE would have to pay a total of $1.7 billion in penalties, with a preliminary deal includes a $1 billion fine and $400 million in escrow in case of future violations. This would come on top of the $361 million ZTE had already paid under the original settlement.
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