The US will Lift the Ban with ZTE after Paying an Additional $400 Million

The Chinese company has already fulfilled all the previous requirements of the United States: paid a fine of $1 billion and changed the leadership.

Chinese company ZTE has signed an agreement with the US Department of Commerce on escrow, according to which the manufacturer undertakes to transfer $400 million to the account as a guarantee of the fulfillment of the promises not to violate US legislation. This is reported by the publication Bloomberg.

ZTE
ZTE

As soon as ZTE transfers money to the account, and this can happen today and tomorrow, the US government will abolish the ban imposed on the company. In particular, it will again be able to buy components and equipment in the US, as well as sell its products there. The agreement is designed for 10 years. If during this time the manufacturer violates the laws, the ban will again come into force, and $ 400 million will be at the disposal of the Americans.

Recall, in April this year, the Ministry of Trade banned ZTE imported components manufactured in the US, accusing the company of delivering its equipment to Iran and North Korea bypassing sanctions. As a result, the manufacturer was on the verge of bankruptcy and announced the termination of its operating activities. The situation even intervened leaders of both countries – Donald Trump and Xi Jingping.

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To solve the problem, ZTE had to pay a fine of $1 billion and make personnel changes in the company’s management. Last month, ZTE announced the appointment of a new CEO, and a little earlier, the company’s board of directors was re-elected. The US Department of Commerce also issued a statement stating that this is the largest fine and the most stringent conditions ever used by the US Department in such cases.

Via: Techcrunch

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The US will Lift the Ban with ZTE after Paying an Additional $400 Million
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