U.S. government signs an agreement with ZTE to lift export ban
ZTE will once again be able to conduct business with American component vendors.
ZTE’s woes in the U.S. are about to come to a close. The Chinese telecommunications giant has signed an agreement with the Department of Commerce that will lift the export ban — which will allow ZTE to do business with American suppliers like Qualcomm. ZTE was issued a denial order in April after it was revealed that the manufacturer violated sanctions against North Korea and Iran.
ZTE is now required to complete a $400 million escrow payment, following which the ban will be lifted:
Our statement on #ZTE and the escrow agreement: pic.twitter.com/w0Bbej1mAU
— U.S. Commerce Dept. (@CommerceGov) July 11, 2018
The three-month saga is estimated to have cost ZTE upwards of $3 billion, according to Bloomberg. The company had to appoint a new chairman and replace its senior management, and while the export ban is set to be lifted, ZTE could face further penalties from the U.S. Senate.