Chinese company ZTE agrees to pay $1 billion fine to US

June 07, 2018 19:18

The Washington Post reports:

The Trump administration has agreed to relax its punishment of Chinese telecom company ZTE, Commerce Secretary Wilbur Ross said Thursday.

The company will pay a $1 billion fine and agree to establish and pay for an in-house compliance team staffed by United States experts, Ross told CNBC.

The move eases a seven-year ban on ZTE buying American parts, which Commerce levied in April.

At the time, the Chinese government complained that the action could put the company, a major employer and star of the Chinese technology industry, out of business.

"We are literally embedding a compliance department of our choosing into the company to monitor it going forward. They will pay for those people, but the people will report to the new chairman," Ross said.

"This is a pretty strict settlement. The strictest and largest settlement fine that has ever been brought by the Commerce Department against any violator of export controls."

The Commerce Department action came after President Trump tweeted earlier this month that he planned to help ZTE because 'too many jobs in China' would otherwise be lost.

The President's extraordinary intervention in an enforcement matter drew widespread criticism on Capitol Hill from members of both parties.

Read full report HERE

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