The U.S. government has agreed to lift export restrictions on Chinese telecom company ZTE Corp. and instead imposed a hefty fine and other penalties, Reuters reported May 25, citing a senior Congressional aide.
In addition to the fine, the deal would require changes in ZTE's management and place U.S. compliance officers at the company, the report said.
As part of the agreement, the Commerce Department would remove a seven-year export ban that prevented U.S. companies from selling technology to ZTE. The restrictions were imposed after the Chinese company allegedly violated international sanctions and made false statements to the U.S. government.
The White House did not confirm the agreement.
Bloomberg reported that any deal with ZTE could face resistance in Congress. Earlier, the U.S. House of Representatives passed a defense policy bill that would ban U.S. government agencies from using technology developed by ZTE.
