U.S. to lift ban on ZTE after signing agreement

Irving Hamilton
July 13, 2018

Hong Kong, July 12, 2018 -Shares in Chinese telecoms equipment maker ZTE surged more than 20 percent in Hong Kong on Thursday after the company moved a step closer to having a painful U.S. purchase ban lifted.

The Commerce Department struck a new deal with ZTE on June 7 that would allow the company to resume buying from USA suppliers on the condition that it put the $400 million into an escrow account and pay a $1 billion fine, which it recently did.

The Commerce Department on Wednesday said it had reached an agreement with ZTE regarding the process by which the firm would deposit $400 million into an escrow account as part of a penalty for its violations of an earlier settlement.

It was also ordered to replace its board of directors and retain outside monitors.

The Chinese phone maker had shut down its operation in the USA after Commerce issued a ban in April on us businesses selling equipment to ZTE, a punishment for the company violating us sanctions against Iran.

ZTE has already paid $1 billion to the agency. The ban forced ZTE to announce it was shutting down.

Won’t let Nawaz become a hero, says Khan
The police arrested 300 party workers late on Wednesday and are looking for 300 more activists, the newspaper reported. The former prime minister told media that I am struggling for my country and jail or punishment can not stop him.

Many US lawmakers, including some of Trump's fellow Republicans as well as Democrats, view ZTE as a national security threat, worrying that the use of its technology in the United States could make it easier for China to steal secrets. Shares of smaller USA suppliers, which are more dependent on ZTE, pared losses after the news, including optical component makers Acacia Communications Inc, Oclaro Inc and Lumentum Holdings Inc. The current ban could have lasted up to seven years. The department missed a 30-day deadline to choose the monitor, but said on Wednesday the timetable was adjusted to conduct "due diligence".

ZTE also agreed to allow the US government unfettered site visits to verify USA components are being used as claimed by ZTE, and to post calculations of the USA components in its products on its website in Chinese and English.

The US House and Senate have each passed amendments to their defence bills that would roll back Trump's settlement.

"The administration's awful ZTE deal will undermine our national and economic security, which is exactly why the Senate overwhelmingly passed bipartisan legislation to retroactively tear it apart", he said.

The Senate and the House are in the process of reconciling the differences between the two versions. It also broke news of the ban in April.

Other reports by

Discuss This Article