ZTE pleaded guilty past year to conspiring to evade USA embargoes by selling US equipment to Iran.
ZTE, whose survival has been threatened by the ban, secured the lifeline settlement from the Trump administration on Thursday.
The US government said it imposed the ban in April because ZTE violated a 2017 agreement in which the Chinese company admitted to evading sanctions on Iran and North Korea.
The ban, which has prevented ZTE from buying the United States components it relies on to make smartphones and other devices, will not be lifted until ZTE pays a fine and places $400 million more in an escrow account in a U.S. -approved bank. Reuters on Tuesday revealed that ZTE had signed a preliminary agreement with the Commerce Department. The telecommunications company announced it was shutting down just weeks after the ban was announced. In April, the White House announced a seven-year ban on the company buying US parts after it said the company violated USA sanctions on trade with Tehran and Pyongyang. After 10 years, if there are no violations, the $400 million will be returned to ZTE. Senators on both sides of the aisle criticized Trump for calling on the Commerce Department to reverse its position, with many saying ZTE poses a risk to USA national security.
But a number of U.S. lawmakers aren't satisfied with that agreement, saying the issue extends beyond punishment and is more about national security.
As part of the order, ZTE must identify in detail to the Commerce Department all Chinese government ownership and control of ZTE, including public and private shares.
"The compliance monitor will be on the same level as ZTE's CEO and board on compliance matters".
A separate monitor was appointed to a three-year term by a US federal court in Texas last year. Tom Cotton, R-Ark., Chris Van Hollen, D-Md., and Chuck Schumer, D-N.Y., added language to the National Defense Authorization Act to reinstate a ban on ZTE buying US components. Although $1.4 billion is not a small amount of money, it sets the stage for other companies to also violate trade laws under the assumption that, at worst, they'll have to pay a hefty fine. "What you are seeing is a bipartisan reaction against letting ZTE off the hook" he said.