As part of the deal, ZTE has also reportedly promised to replace its board and executive team in 30 days.
Commerce Secretary Wilbur Ross says that the Trump administration has reached a "definitive agreement" with Chinese telecom giant ZTE that Ross claims "imposes the most strict compliance that we've ever had on any company, American or foreign".
The Trump administration yesterday announced a deal to allow the telecommunications company to resume buying from US companies, eliminating a key sticking point for the two nations in their talks on trade.
The move eases a seven-year ban on ZTE buying American parts, which Commerce levied in April. The company will also have to keep a team of "compliance coordinators" for the next 10 years, which will be selected by the DoC. "It's unprecedented to have USA agents as monitors ..." This would allow the U.S. to quickly re-instate the ban if ZTE violates the terms of the 10 year agreement. Both ZTE and Huawei devices were even banned from being marketed in U.S. military bases.
President Donald Trump has drawn fire from Congress for intervening in the case to rescue a Chinese company that had violated us sanctions against two rogue nations that have been pursuing nuclear weapons programs.
Ross said the United States will install its "own compliance people" to monitor the company, and shareholders will bring in new management and board.
The White House didn't respond to a request for comment. "And that brings to a conclusion this phase of the development with them", Ross said. Last month, Trump tweeted that he was looking for a way for ZTE to "get back into business, fast" because there were "too many jobs in China lost" from ZTE's shutdown. ZTE paid 190 million dollars for such violations, but the dispute continued because the Commerce Department alleged that the company cheated the regulators and did not sanction the employees who authorized the transactions. "This egregious behavior can not be ignored", Secretary of Commerce Wilbur Ross said in a press release at the time.
The agreement follows growing criticism within the Republican party of the president's handling of trade negotiations with China and attempts by some in Congress to rein in his authority to impose tariffs on the EU, Canada and other allies in the name of national security.