ZTE pays US$1 billion fine as US lawmakers pass amendment to reinstate ban
The wrangling over settlement with China’s second-largest telecom equipment maker has seen Republicans allying with Democrats to defy Trump
ZTE Corp has paid the fine for violating US trade laws and is in the final stages of arranging an account for future penalties, according to people with knowledge of the matter.
The payment came as the US Senate passed an amendment to reinstate a ban that had crippled the second largest telecom equipment maker in China.
ZTE, which was on the brink of collapse after the US ban on buying American components, has made the required US$1 billion payment, said the people, who asked not to be named because the information is private.
The company is finalising details about the establishment of an escrow account for the US$400 million payment that will be held in the event of any future violation, and who will be responsible for the account, the people said.
The settlements are crucial for ZTE to resume buying the US components essential to its products. The destiny of ZTE is also pivotal in the tense US-Chinese negotiations over trade.
