ZTE Corp, one of the leading Chinese manufacturers of telecommunications equipment from China, was prohibited from doing business with a company base in the United States. However, the company was in negotiations with the US government remove this prohibition.
The ban was introduced after ZTE Corp. violated the agreement reached after ZTE pleaded guilty to the US federal court last year for illegally shipping US goods and technology to Iran, which is a violation of US sanctions.
Now the United States has announced that it has signed an agreement with ZTE Corp, which opens the way for the Chinese technology giant to resume it after a three-month ban on doing business with US suppliers.
According to reports, the ban on Chinese ZTE Corp. will be removed after the company places 400 million dollars in a conditional deposit account with the US Department of Commerce. The department announced in the statement of signing the escrow agreement.
The escrow agreement is part of the mortgage agreement of 1,4 billion. USA achieved with the Department of Commerce last month to restore access to US suppliers, whose components it uses for its smartphones and network devices.
The new settlement also includes Penalty in the amount of 1 billion dollars that ZTE paid in the US Treasury last month and 400 million dollars in the escrow account that the United States. The government can seize the escrow amount if ZTE violates the last settlement. In addition, a fine of 1 billion dollars in addition to almost $ 900 million ZTE paid out last year.
It is expected that the company will resume its main business operations as soon as the ban is lifted. Earlier, the company, which employs about 80 000 people, announced that it discontinuation of the main business operations because of the US ban.
Under the new agreement, ZTE needed to change its board and management within 30 days. In addition, the company must hire an external compliance monitor, selected by the Ministry of Commerce.
In addition, the company also agreed to allow US governments unhindered visits to the site to verify that US components are being used in accordance with ZTE's requirements. He also agreed to publish US component calculations in his products on his website in Chinese and English.
( Source )