President Donald Trump's administration may impose a fine of as much as $1.7 billion before lifting export restrictions on Chinese telecommunications equipment maker ZTE Corp., Reuters reported, citing people familiar with the matter.
The U.S. had slapped the restrictions on ZTE after the Shenzhen-based company allegedly violated international sanctions and made false statements to the U.S. government.
The news outlet reported earlier that the U.S. government had agreed to ease the restrictions in exchange for a hefty fine and management changes at the company. The U.S. reportedly wants the company to replace its board and executive team within 30 days, but negotiations are still underway, according to the report.
The U.S. Commerce Department is also seeking site visits to check if ZTE is using U.S. components. The department also wants the company to post calculations of the U.S. components in its products on a website.
Representatives from the Commerce Department and ZTE did not immediately respond to Reuters' request for comment.
