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July 12, 2018

U.S. government signs an agreement with ZTE to lift export ban

by John_A

ZTE will once again be able to conduct business with American component vendors.

zte-blade-z-max-6418.jpg?itok=UJjROWCk

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.

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