ZTE to pay $1.7 billion in fines to the US government, needs to replace its execs
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.
News credit : Gsmarena