UPDATED 8:06 AM PT — Thurs. June 7, 2018
The U.S. has reached a deal to lift sanctions on Chinese telecommunications firm ZTE.
Commerce Secretary Wilbur Ross confirmed the agreement Thursday, saying his department will impose a one billion dollar penalty against the telecommunications giant.
The deal also forces ZTE to make changes to its management.
Along with the fine, a U.S. selected compliance team will be added to the firm to monitor the company.
“They’re accepting having of this compliance team in, whole new management, whole new board, should serve as a very strong deterrent, not only for them, but for other potential bad actors,” said Secretary Ross.
The commerce secretary added, the deal also includes $400 million in escrow to cover any future violations.