ZTE of China apologizes and promises to restart after the suspension of the US

HONG KONG / SHENZHEN (Reuters) – The president of ZTE Corp apologized to staff and clients on Friday after the Chinese technology firm agreed to pay a one billion dollar fine to the United States to end to a ban that has paralyzed key businesses, including smartphones.

The prohibition, which dates back to a violation of the US embargo. UU On trade with Iran, prevented the second largest manufacturer of telecommunications equipment in China bought the components of the US. UU Of which it depends to manufacture telephones and other devices.

In addition to the fine, ZTE agreed to review its leadership in exchange for lifting the ban. In a memorandum to the staff, President Yin Yimin said ZTE would seek to resume the business as soon as possible and hold those responsible responsible for the violation accountable, a company source said.

"This problem reflects the problems that exist with the compliance culture of our company and the level of management," Yin wrote, according to the source, adding that the incident was caused by the mistakes of some ZTE leaders and employees.

He added that the US ban had caused "enormous losses to the company" that had been forced to pay a "disastrous price".

ZTE did not respond to the repeated requests for comments.

ZTE pleaded guilty last year to conspiring to evade US embargoes UU When buying American components, incorporate them into the ZTE team and send them illegally to Iran, paying almost $ 900 million in fines. The last sanction in April was because ZTE lied about disciplining some executives responsible for the original violations.

The ZTE ban became a key focus in the crude trade negotiations between Washington and Beijing, and an agreement was reached to lift it when US President Donald Trump seeks trade concessions from China and negotiations continue to avoid a war between the two largest economies.

Under the agreement, ZTE will change its board and administration within 30 days, pay the $ 1 billion fine and deposit an additional $ 400 million in custody. The agreement also includes a new 10-year ban that is suspended unless there are future violations.

A ZTE Corp sign appears at its service center in Hangzhou, Zhejiang Province, China, on May 14, 2018. REUTERS / Stringer

Sijia Jiang report in HONG KONG; Written by Adam Jourdan; Edition of Stephen Coates and Miral Fahmy


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