U.S. lift ban on suppliers selling to ZTE in China

(Reuters) – The US Department of Commerce UU On Friday, it lifted a ban on US companies selling products to ZTE Corp, allowing China's second largest manufacturer of telecommunications equipment to resume commercial activity. The Commerce Department had said it would lift the ban after ZTE paid a $ 1 billion fine and deposited $ 400 million in a US bank deposit escrow account. UU As part of an agreement reached last month.

"As long as we lift the ZTE ban, the department will remain vigilant as long as we continue to monitor ZTE's actions to ensure compliance with all US laws and regulations." Secretary of Commerce Wilbur Ross said in a statement sent by email.

ZTE did not respond immediately to requests for comments.

ZTE, which depends on the USA. UU components for their smart phones and network equipment, they ceased their main operations after the ban was ordered in April. The punishment came after the company made false statements about disciplining 35 employees involved in the illegal shipment of products of US origin to Iran and North Korea, Commerce officials said. ZTE pleaded guilty and settled with Commerce last year for illegal shipments.

On Thursday, ZTE shares in Hong Kong rose 25 percent after Reuters reported that the United States had signed an escrow agreement that paved the way for ZTE to deposit the $ 400 million. The fine of $ 1 billion was sent to the US Treasury. UU Last month.

The $ 400 million will remain in a escrow account for up to 10 years to provide the US government. UU Access to money if ZTE violates the latest agreement.

The June agreement also required that ZTE change its board of directors and administration, and allow site visits without restrictions from the US government. UU Verify that the components of the EE. UU They are being used as claimed.

Now it will work with a suspended suspension of 10 years hanging over your head, which the United States can activate if it finds new violations. The current ban could have lasted seven years.