On March 7, 2016, the US Department of Commerce proposed to impose export restrictions on ZTE because ZTE suspected of violating the US export control policy towards Iran, and prohibited US component suppliers from exporting components, software, equipment and other technical products to ZTE. ZTE has a market share of nearly 10% in the United States. It cooperates with AT&T, T-Mobile and other operators to sell its brand phones. Its market share is the fourth largest in the United States, and its prepaid market is the second largest in the United States. ZTE is the largest Chinese mobile phone manufacturer in the United States market. In addition, it also purchases parts from many well-known international manufacturers, including Qualcomm, Microsoft and Intel.
After a year of negotiations, ZTE finally reached a settlement with the US government on the US government's export control investigation case on the evening of March 7, Beijing time. As part of the settlement agreement, ZTE agreed to pay criminal and civil fines of up to US $892360064, which is also the highest amount of fines in recent years due to violations of US export controls. In addition, ZTE will abide by relevant agreements and continue to accept independent compliance supervision and audit in the next seven years, otherwise it will pay a fine of US $300 million to the Bureau of Industry and Security of the US Department of Commerce.
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