In 2018, the government placed a seven-year USA parts supply ban on ZTE, as it claimed the company had not yet disciplined 35 of its employees, which was a condition of the 2017 deal.
The source also told FOX Business that ZTE will be on probation for 10 years and for 10 years the company will have to hire special compliance coordinators selected by and answerable to the U.S. Bureau of Industry and Security within the Commerce Department. When U.S. regulators found that the company had not complied with the terms of the agreement, they cut off ZTE from its U.S. parts suppliers, a move described as a "death sentence" by the company, which employs 70,000 people in China.
The deal also includes a suspended 10-year ban on buying USA components that could be activated by any violations, people familiar with the arrangement told Reuters. The agreement is also expected to call for other concessions from ZTE, including new board members and increased US oversight of its business.
It's looking more and more like ZTE will be saved, thanks to a new agreement between the China-based smartphone maker and the US government.
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No date has been given for the summit, which would be the first public meeting between Kim and another head of state in Pyongyang. Defence minister Pak Yong Sik has been suceeded by former first vice minster No Kwang Chol.
Reuters says ZTE has now reached a preliminary agreement that will see the sanctions lifted. It has enjoyed the backing of Chinese President Xi Jinping, who has been negotiating with Trump over a broader trade agreement. In exchange, ZTE would have to pay a total of $1.7 billion in penalties, according to the the report. It also has to replace its board of directors and top-level executives within 30 days of signing the agreement.
Sources told the outlet that ZTE signed a USA "agreement in principle" over the weekend, but had not yet signed an amended version.
U.S. President Donald Trump arrives for a welcoming ceremony in Beijing, China, November 9, 2017.
Regardless of those talks, the Trump administration is facing a deeply hostile reaction from Congress, where there is bipartisan opposition to the deal. The company relies on USA -made components for many of its products, and also sells many of those products to US customers. It has a small but rising share of the smartphone business in the US.