Trade war: US reaches deal with China's phone maker ZTE Corp

Imposes Rs 2.3 billion penalty in agreement to end crippling sanctions

The US reached a deal to allow ZTE Corp to get back in business after the Chinese telecommunications company pays a record-large fine and agrees to management changes, eliminating a key sticking point as the two countries try to avert a trade war.

“We still retain the power to shut them down again,” Commerce Secretary Wilbur Ross said Thursday in an interview on CNBC. 

He said the Commerce Department’s $1.4 billion fine, including $400 million in escrow, brings US penalties between last year and this year to $2.3 billion.

The US blocked ZTE’s access to US suppliers in April, saying