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The ZTE is still experiencing the trouble from its supposed violation of the U.S trade sanctions against North Korea and Iran. The major tech giant of China has finalized an agreement with the Commerce Department to both declared convicted for violation charges and pay as a penalty of total 1.19 billion U.S dollars. It seems costly, but ZTE doesn’t have more options. It is important that the U.S sanctions against the Chinese company had been postponed while the both sides negotiated a deal. It would damage its business by heavily denying access to major American parts such as the mobile processors of Qualcomm. It might directly affect its entire global business.

The agreement also needs that ZTE should submit a 3-year experimentation period with having an independent monitor in order to verify its export products. There would always be a behavior of a criminal investigation, so ZTE should cooperate with the U.S Justice Department. It is important that any individual has been charged, but according to honor the agreement, ZTE should fire its 4 employees. It hasn’t been considered an exactly a simple penalty. It has been confirmed that the U.S was willing to prevent heart-warming sanctions against ZTE Company. China was furious at the allegations and imposing restrictions on ZTE in the first place. The company has mentioned it as a heavy risk of a trade war and it might restrict American firms to reach China.