(Reuters) - U.S. Commerce Secretary Wilbur Ross said on Thursday the government has reached a deal with ZTE Corp that reverses a ban on its buying parts from U.S. suppliers, allowing China’s No. 2 telecommunications equipment maker to get back into business.
Under the deal, ZTE will change its board and management within 30 days, pay a $1 billion fine and put $400 million in escrow. The government will suspend the 10-year ban but it can activate the ban if there are any violations.
“We will closely monitor ZTE’s behavior,” Ross said in a statement. “If they commit any further violations, we would again be able to deny them access to U.S. technology as well as collect the additional $400 million in escrow.”