The saga of ZTE and its ban on buying U.S. components may be coming to an end.
ZTE has agreed to a deal that would lift the ban placed on it by the U.S. Commerce Department that bans ZTE from buying components from U.S. companies. That’s according to sources speaking to Reuters, who add that ZTE signed the agreement in principle over the past weekend by that the amended settlement agreement has not yet been signed.
As part of the deal, ZTE is expected to pay a $1 billion fine plus $400 million in escrow in case any future violations occur. When added to the fine that ZTE has previously paid as part of a settlement agreement from last year, the company will end up paying the U.S. a penalty of $1.7 billion.
ZTE ceased main business operations one month ago after the U.S. Commerce Department placed its ban on the company. This is a pretty hefty ban for ZTE to pay, but the company previously said that being banned from buying U.S. components would “severly impact” its survival, so the company is likely willing to pay this penalty so that it can stay alive.