US in deal to ease sanctions on China's ZTE: top official

US officials reached a deal today to ease sanctions which threatened to cripple Chinese smartphone maker ZTE, Commerce Secretary Wilbur Ross said.

Ross told CNBC television the deal includes a USD 1 billion fine levied on the Chinese firm and a requirement that it change its board of directors.

In April, the Chinese group was cut off from US technology products for violating US sanctions against North Korea and Iran -- measures which threatened to put ZTE out of business.

Ross said the agreement calls for "embedding a compliance department" chosen by Washington to monitor company conduct. "They will pay for those people but the people will report to the new chairman," Ross said.

"This is a pretty strict settlement. The strictest and largest settlement fine that has ever been brought by the Commerce Department against any violator of export controls."