ZTE has signed a preliminary agreement with the United States to revoke the 7-year ban order

According to reports, ZTE has signed an agreement to withdraw the U.S. Department of Commerce’s procurement ban, allowing the telecommunications equipment manufacturer to resume its procurement business with U.S. suppliers.

Since the U.S. Department of Commerce issued a seven-year procurement ban in April this year, ZTE has stopped its main business. The company received the ban from the U.S. Department of Commerce for breaching an agreement signed in 2017 to illegally ship products to Iran and North Korea.

On Tuesday, the US Department of Commerce spokesman James Rockas said: "The two sides have not yet reached a final agreement."

ZTE did not immediately comment on this matter.

According to sources, the preliminary agreement includes the United States’ US$1 billion fine for the incident and the remaining 400 million U.S. dollars for the prevention of future violations by third parties. The content of the agreement is basically in line with the Reuters report on Friday.

The source said that the U.S. Department of Commerce plans to revise the settlement reached last year and that it will also pay 361 million U.S. dollars to be paid by ZTE as part of the settlement. As a result, ZTE needed to pay a total of US$1.7 billion in fines to the United States.

According to sources, ZTE signed an agreement drafted by the United States last weekend, but it did not sign the revised settlement reached last year.

The agreement also includes that ZTE needs to be reviewed at any time to ensure that parts supplied by U.S. companies are used in the manner declared by the company, published on the public website for the use of U.S. parts in the company’s products, and adjusted within 30 days. Board of directors and executive team.

About 25 to 30% of the parts in ZTE’s hardware products come from US companies. These products include smart phones and equipment needed to build telecommunications networks.

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