The US and ZTE Corp have reached a preliminary agreement outlining the conditions which would lift the ban placed on buying from American suppliers, sources told Reuters, though the deal has yet to be finalised.
The deal stipulates that ZTE must pay a $1 billion fine along with $400 million as insurance against any future violations, the sources said. The ban, which took effect in April, was intended as punishment after ZTE broke an agreement to cease all sales to North Korea or Iran.
The Commerce Department has said that “no definitive agreement has been signed by both parties.”
The preliminary deal has sparked fierce opposition from policymakers on Capitol Hill. Senate minority leader Chuck Schumer called on congress to “block this deal right away,” adding that the administration’s leniency will not effect change in the company’s practice.
“By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China.”
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