ZTE Back in Business with a Fine, Management Changes, and New Oversight

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The new deal is requiring ZTE to pay a big fine, change its management team, and place U.S. compliance officers at the company.

If this happens, The Commerce Department is going to lift an order from April that prevented ZTE from buying products from the United States. After the order was announced, ZTE shut down almost all of their production.

Fox news announced that the President told them on Thursday that he made a deal with the Chinese President, Xi Jinping, for paying a $1.3 billion fine. According to them, the deal was made over a phone call.

Question from the American People:

  • Will U.S. compliance officers be able to ensure ZTE’s level of security?
  • When the ban and fines serve as a warning to other Chinese and foreign companies? Or will it spur companies to avoid purchasing U.S. parts?