The US and China have finalized a deal lifting sanctions on ZTE doing business with American companies in return for a $1 billion fine and special regulatory measures to be carried out on the firm.
ZTE, which ceased its core business operations shortly after the US government banned it from using its suppliers, will have to employ US enforcement officers as a safeguard against further violations, reports the Wall Street Journal.
“We still retain the power to shut them down again,” said Commerce Secretary Wilbur Ross in an interview.
In addition to the fine and management changes, ZTE will also put $400 million in escrow as collateral if it decides to break the terms of the agreement.
US lawmakers from both sides of the aisle have hastened to oppose the deal, with the senate putting forward a bill to reinstate the ban and extend it to other large Chinese technology firms such as Huawei.