White House appears to have reached deal to save ZTE

Insiders of the Trump administration have announced that a deal has been reached that will save telecom company ZTE from bankruptcy. The company would have to pay a fine and hire American employees to control the company.

The news was shared by the New York Times. Under the terms of the deal, ZTE would be allowed to trade with US companies again, provided the company pays a large fine and hires US compliance officers. These employees must check that the company is not crossing the line again.

Last month, the United States banned US companies from supplying components to ZTE. The company is said to have circumvented US sanctions by supplying products to Iran. The ban would last for seven years.

ZTE has previously indicated that US sanctions threaten the company’s survival. After all, the company is largely dependent on American suppliers, such as Qualcomm, for its business operations. As a result, ZTE halted its operations earlier this month.

Last week it was announced that US President Donald Trump is working with Chinese President Xi Jinping to get ZTE operational again. The company is said to have lost at least $3.1 billion as a result of the sanctions.