A new bipartisan bill in the Senate would see ZTE smacked with heavy fines if it were to violate its settlement agreement with the U.S. ZTE reached an accord with the U.S. earlier this year over its skirting of prior settlement agreements. The company paid a hefty fine and agreed to put an additional $400 million in escrow, as well as replace most of its management. The deal was largely brokered by the Trump administration and allowed ZTE to resume business operations after the U.S. government banned it from using U.S.-made hardware and software. Despite support from the Trump administration, the deal was not popular among some members of congress. That’s why three Republican and three Democratic senators introduced a bill this week that would cause ZTE to forfeit the $400 million in escrow if it violates its new agreement. The authors of the bill want to see reports from ZTE concerning its compliance every 90 days. “This bipartisan legislation would ensure that if ZTE once again violates trade restrictions or its agreement with the U.S., it will be held accountable in a significant, painful way,” said lead sponsor of the bill, Senator Mark Warner, who also serves on the Senate Intelligence Committee. The bill still needs to pass the Senate, the House of Representatives, and be signed by the President before it could be considered law.
Write a comment