I know, that's a mouthful of deceit and shady sh*t from ZTE, hence the reason they were given a hefty ban. Since then, the company appears to have signed a preliminary agreement that would see them pay a larger fine and then have the ban lifted. Here we are, though.
The preliminary deal includes a $1 billion (roughly Rs. 6,700 crores) fine against ZTE plus $400 million (roughly Rs. 2,700 crores) in escrow to cover any future violations, sources said, adding that the terms were in line with Reuters reporting on the U.S. demands on Friday. Besides having to pay a huge fine, ZTE must also allow unrestricted visits meant to verify that United States components are being used as claimed by the company.
Or maybe this will be blocked?
Now, ZTE has reportedly signed an agreement with the USA, but apparently the Commerce Department has not yet signed.
ZTE, the Chinese telecommunications company trying to resolve a seven-year U.S. export ban, has sent out reprimand letters to 35 current and former employees involved in illegal sales to Iran and is seeking to claw back bonuses from those who have left the company, according to people familiar with the matter. Trump later said his administration would allow the company to stay in business after paying a $1.3 billion fine, changing its management and board and providing "high-level security guarantees".
ZTE could not be reached for comment by either Reuters or the Post.
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. The agreement is also expected to call for other concessions from ZTE, including new board members and increased US oversight of its business. "Congress should move in a bipartisan fashion to block this deal right away".
The terms, they said, were in line with Reuters reporting on the US demands Friday. Smaller makers of optical components, including Oclaro and Acacia, rely more heavily on ZTE's business. While it did fire the four employees, the company admitted to making false statements about the others, handing out full bonuses.
Shares of Acacia and Oclaro extended their gains on Tuesday in heavy trading after news of the preliminary deal, ending up 1.7 percent and 1.8 percent, respectively.