The following is an excerpt from Karen Freifeld | June 5, 2018 | reuters.com |
(Reuters) - ZTE Corp (000063.SZ) has signed an agreement in principle that would lift a U.S. Commerce Department ban on buying from U.S. suppliers, allowing the Chinese telecommunications equipment maker to get back into business, according to sources familiar with the matter.
ZTE (0763.HK) ceased major operations and has been on life support since the seven-year ban was imposed in April on the company for breaking a 2017 agreement reached after it was caught illegally shipping goods to Iran and North Korea.
Commerce Department spokesman James Rockas said on Tuesday that “no definitive agreement has been signed by both parties.”
ZTE did not immediately respond to requests for comment.
The preliminary deal includes a $1 billion fine against ZTE plus $400 million in escrow in the event of future violations, sources said, adding that the terms were in line with Reuters reporting on the U.S. demands on Friday.
For more visit: reuters.com