Chinese smartphone maker ZTE will pay a fine of $1 billion and bring an American monitoring team on board to resolve a high-profile dispute with the United States.
The deal, announced by US Commerce Secretary Wilbur Ross, will mean the end of a ban on ZTE buying American parts, provided the state-controlled company sticks to the terms.
Ross said the deal was struck at around 6 a.m. ET on Thursday, and it will impose “the most strict compliance that we’ve ever had on any company, American or foreign.” ZTE will also put $400 million in an escrow account.
The fate of the company has become a major flashpoint in trade tensions between the United States and China.
In April, the US Commerce Department blocked American firms from selling parts or providing services to ZTE, which also makes telecommunications equipment.