Passers by walk along a footbridge in front of the ZTE building in Nanshan Hi-Tech Industrial Estate in Shenzhen

The US is fining ZTE in $1 billion, but easing the sanctions that almost put it out of business

$1 billion

The US has issued a reprieve for ZTE, easing sanctions that threatened to put the Chinese phone maker out of business.

Published   |  Photo by Reuters/Bobby Yip
Passers by walk along a footbridge in front of the ZTE building in Nanshan Hi-Tech Industrial Estate in Shenzhen
$1 billion

The deal forces ZTE to pay a new fine of $1 billion, remove its current executives and board of directors, and embed a US-picked compliance team to monitor its business for 10 years.

Passers by walk along a footbridge in front of the ZTE building in Nanshan Hi-Tech Industrial Estate in Shenzhen
$1 billion

The US banned American companies from doing business with the Chinese firm in April, cutting its access to crucial parts it needed to make its products, and forcing it to suspend production.

Passers by walk along a footbridge in front of the ZTE building in Nanshan Hi-Tech Industrial Estate in Shenzhen
$1 billion

The ban was meant to punish ZTE for misleading regulators, and for not firing executives that had violated US sanctions. If those abuses continue, it could pay an extra $400 million.

Passers by walk along a footbridge in front of the ZTE building in Nanshan Hi-Tech Industrial Estate in Shenzhen
$1 billion

The deal, which was criticized by some Republicans, indicates the US could be trying a more friendly tone in its trade talks with China—in contrast with how it’s dealing with EU allies.

home our picks popular latest obsessions search