ZTE has reached a deal to have U.S. sanctions lifted

ZTE has reached a deal to have U.S. sanctions lifted

ZTE has reached a deal to have U.S. sanctions lifted

Ross said the USA will install its "own compliance people" to monitor the company and shareholders will bring in new management and board.

For the last month, Chinese smartphone giant ZTE has been largely shut down after the Trump administration banned U.S. firms from selling it technology. But after the Commerce Department determined that ZTE did not abide by those original sanctions, the company was hit with an even harsher penalty: It was not allowed to buy USA parts.

Reuters reported exclusively on Tuesday that ZTE had signed a preliminary agreement with the Commerce Department, along with the fine and other terms.

"We still retain the power to shut them down again", Ross said.

Trump barged into the ZTE case last month by tweeting that he was working with President Xi Jinping to put ZTE "back in business, fast" and save tens of thousands of Chinese jobs.

"The total deal is $1.4 billion".

Senate Democratic leader Chuck Schumer called the agreement "a 180-degree turn away from the president's promise to be tough on China".

One of the U.S. companies caught in the crossfire is Qualcomm Inc, whose products account for the lion's share of chips inside ZTE smartphones.

A ZTE spokesman couldn't be reached for comment.

The deal stipulates that ZTE will overhaul its board of directors and executive team in 30 days.

The company paid $892 million in fines, with an additional $300 million suspended to encourage compliance with the settlement. Post calculations of U.S. parts in the company's products would also have to be on a public website.

Here are three things to know about what ZTE and a similar Chinese telecom company, Huawei. The U.S. also needs China's help negotiating the denuclearization of North Korea ahead of a June 12 summit between President Donald Trump and North Korea's Kim Jong Un. The agreement is also expected to call for other concessions from ZTE, including new board members and increased USA oversight of its business. But the president has repeatedly spoken of the enforcement matter as part of efforts to overhaul the US commercial relationship with China.

Qualcomm gains 2.5% and NXP is up 3.2%. Building and maintaining a 5G network in the USA may create 3 million jobs and provide a $500 billion boost to GDP, according to a 2016 Accenture report. "So this change is appropriate to bring the punishment back in line with what was originally intended", as US official told Breitbart News. NeoPhotonics (NPTN) rose 1.6% to 7.15, while Oclaro (OCLR) climbed 1.4% to 9.18.

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