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The fine comes on top of the roughly $1 billion ZTE has already paid for selling equipment to North Korea and Iran in violation of us sanctions.

According to Reuters, the preliminary deal includes a $1 billion fine against ZTE plus $400 million in escrow for any future violations, sources said.

Under the deal, the Chinese giant will also have to change its entire board of directors and retain outside legal compliance specialists who will report to the Commerce Department for 10 years.

US President Donald Trump himself linked ZTE's fate to the talks, saying that China's president Xi Jinping had personally requested that he intervene in the case.

In April, the U.S. Commerce Department banned ZTE from buying parts from American suppliers after the company was found to have falsely informed the U.S. government that it had disciplined employees responsible for violations that led to a settlement a year ago.

Following the ban on selling US -made hardware (and potentially software) to ZTE earlier this year, it appears that the company may have reached a compromise with the USA government, according to Reuters. ZTE will have to welcome a team of "special compliance coordinators" for a period of 10 years to ensure that it is adhering to the terms of the new agreement.

ZTE's survival has been a topic of discussion in high-level U.S.

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With a day to go before the film hits theatres, the film has already earned Rs. 230 crore from its theatrical and music rights. Pro-Kannada workers protest outside Balaji theatre in Bengaluru where Rajinikanth's movie Kaala is screening, on June 7, 2018.

The chairman of ZTE Corp (000063.SZ)(0763.HK) apologised to staff and customers on Friday after the Chinese technology firm agreed to pay a $1 billion fine to the United States to end a ban that has crippled key businesses, including smartphones.

Back in April, as punishment for continued violations of a previous export ban settlement with the US, the US Department of Commerce's Bureau of Industry and Security enacted a denial order against ZTE.

After having been found to have sold equipment to sanctioned countries such as Iran and North Korea, ZTE was previously fined $1.19 billion. He later tweeted that the ZTE talks were "part of a larger trade deal" being negotiated with China.

The Commerce Department said the compliance team will be in place for a decade.

"The Chinese are well aware there's a new marshal in town", Ross said.

ZTE's return to the US market is good news for several American companies.

Citing "sources familiar with the matter", Reuters disclosed Tuesday that ZTE could soon be allowed to buy the USA products. Senate minority leader Chuck Schumer (D-NY) has said publicly that "Both parties in Congress should come together to stop this deal in its tracks".


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