Last step for ZTE to lift ban
ZTE is expected to deposit $400M in an escrow account in a U.S. bank in the "next couple of days," the last step it must take before a ban on U.S. suppliers can be lifted.
As part of a settlement it reached on June 7 with the Commerce Department, the Chinese telecom equipment company agreed to pay a $1B penalty and put $400M in escrow to regain access to American components.
ZTE, which makes smart phones and networking gear, agreed to pay a $1 billion penalty and put $400 million in escrow as part of a settlement it reached on June 7 with the Commerce Department to regain access to the U.S. market, which it needs for components.
ZTE, China’s second-largest telecommunications equipment maker, ceased major operations after the United States imposed the ban in April. The company had broken a prior agreement, the Commerce Department said, by making false statements about disciplining executives involved in illegally shipping U.S. goods to Iran and North Korea, which are subject to U.S. sanctions themselves, that led to nearly $900 million in civil and criminal penalties to U.S. authorities last year.
The decision to lift the ban was made by President Donald Trump as a way of showing good will to the president of China, White House trade adviser Peter Navarro has said.
The Republican-controlled U.S. Senate passed legislation this week that would overturn the settlement, in a rare rebuke to Trump.