ZTE has reportedly signed an agreement in principle that would lift a U.S. Commerce Department ban on buying from U.S. suppliers, allowing the Chinese telecommunications equipment maker to get back into business.
ZTE ceased major operations since the seven-year ban was imposed in April on the company for breaking a 2017 agreement reached after it was caught illegally shipping goods to Iran and North Korea.
According to Reuters, the Chinese company has reached a preliminary deal with the U.S., which includes a $1 billion fine against ZTE plus $400 million in escrow in the event of future violations.
As part of the deal, ZTE must also allow unfettered site visits to verify that U.S. components are being used as claimed by the company, post calculations of the U.S. components in its products on a public website, and replace its board and executive team in 30 days, Reuters reports.
ZTE did not provide any comment.
U.S. companies provide an estimated 30 percent of components in ZTE's equipment, which includes smartphones and gear to build telecommunications networks.