The Trump Administration may penalise Chinese telco ZTE around US$1.7 billion in a bid to tighten controls over the company before allowing it back into business.

The Commerce Department is also seeking unfettered site visits to verify that US components are being used, as claimed by ZTE.

China’s No. 2 telecommunications equipment maker has been crippled by a ban imposed by Washington in April that prevents it buying US technology components.

Washington is also demanding that ZTE replace its board and executive team within 30 days.