ZTE to pay $1.7 billion in fines to the US government, needs to replace its execs

Ro, 02 June 2018

According to inside sources, the Chinese tech giant, ZTE, may soon pay up to $1.7 billion penalty after its April 15 trade ban. The company is estimated to have lost around $3 billion as around 25 to 30% of the hardware it uses is supplied by US firms.

However, this is definitely a scenario ZTE is hoping for because the initial 7-year ban would harm the company in more than one way. In addition to the proposed $1.7 billion fine, the US government wants ZTE to replace its board of directors, executive team and hire a compliance contractor to oversee the company's operations.

After all, the company is expected to pay much less - about $1 billion but will be asked to put $400 million in escrow in a US-based bank.

Interestingly enough, some people familiar with the matter claim that ZTE has turned into a token for bargaining - if the US government agrees to settle things with ZTE, China will buy more American-made agricultural goods.



Reader comments

  • AnonD-708789
  • 05 Jun 2018
  • 6ci

$1.7 billion fines ? peace of cake compare to $50 billion fines to apple in China later. LoL

  • Anonymous
  • 04 Jun 2018
  • Ibx

So true, and stiL occurring with there copy and cheat systems.

USA won a lot economically from this deal, Trump made sure he gets out as a winner from this deal, and China didint have a choice but to comply after all ZTE made this mess themselfs

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