US re­moves trade ban on ZTE

Business Standard - - WORLD - 13 July

The US Depart­ment of Com­merce on Fri­day lifted a ban on US com­pa­nies sell­ing goods to ZTE, al­low­ing China's sec­ond—largest telecom­mu­ni­ca­tions equip­ment maker to re­sume busi­ness.

The Com­merce Depart­ment re­moved the ban shortly af­ter ZTE de­posited $400 mil­lion in a US bank es­crow, as part of a set­tle­ment reached last month. The set­tle­ment also in­cluded a $1 bil­lion penalty ZTE paid to the US Trea­sury in June.

“The depart­ment will re­main vig­i­lant as we closely mon­i­tor ZTE’s ac­tions to en­sure com­pli­ance with all US laws and reg­u­la­tions,” Com­merce Sec­re­tary Wil­bur Ross said in an emailed state­ment that de­scribed the penal­ties and other con­di­tions as the strictest ever im­posed in such a case. The terms “will al­low the depart­ment to pro­tect US na­tional se­cu­rity,” Ross said.

ZTE did not im­me­di­ately re­spond to re­quests for com­ment.

ZTE, which re­lies on U.S. com­po­nents for its smart phones and net­work­ing gear, ceased ma­jor op­er­a­tions af­ter the ban was or­dered in April.

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