ZTE’s survival was once threatened by the ban by the US Department of Commerce, and last Thursday it received the “Help” solution from the Trump administration.
On Sunday, Peter Navarroy, White House trade adviser, said Trump had agreed to lift the Commerce Department's ban on ZTE because of his personal friendship with Chinese leaders.
According to a 21-page order signed by the US Department of Commerce on June 8, ZTE must reorganize the board of directors of its two corporate entities within 30 days. On Monday, this order together with the settlement agreement with ZTE in the U.S. Department of CommercewebsiteAnnounced.
According to this order, members of the leadership of ZTE's senior vice president level and above, as well as any executives or officials involved in misconduct, must be dismissed.
Last year, ZTE acknowledged that it had conspired to circumvent the embargo imposed by the United States and sold equipment containing U.S. parts to Iran. The U.S. Department of Commerce’s ban on ZTE’s purchase of U.S. parts was implemented after the company stated that it wanted to punish some senior executives who were responsible for violations but did not actually punish them. After the U.S. Department of Commerce issued a ban, ZTE stopped its main business operations.
Under the settlement agreement, ZTE will pay a total of 1.7 billion U.S. dollars in civil fines, including the 361 million U.S. dollars, 1 billion U.S. dollar fines that have been paid as part of the March 2017 agreement, and the 400 million U.S. dollars that will be deposited into third-party hosting accounts. (Liu Chun)