Trump administration reaches deal with China’s ZTE

The Trump administration on Thursday reached a deal with Chinese telecom company ZTE, ending devastating U.S. sanctions but requiring the firm to pay a $1 billion penalty for violating U.S. rules on trading with Iran and North Korea. The deal also requires ZTE to pay for a U.S. compliance team that the U.S. is “literally embedding” in ZTE, Commerce Secretary Wilbur Ross told CNBC on Thursday. The sanctions barred the smartphone maker from buying parts from U.S. companies, essentially shutting it down. Chinese President Xi Jinping, who helped pave the way for next week’s North Korea summit, personally asked President Trump to save ZTE. Lawmakers in both parties threatened to block the deal over concerns the company’s equipment could be used to help China spy on Americans.

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