The US Department of Commerce had banned ZTE from selling goods in the USA for a really long time. However, on Friday they have officially lifted the bad and allowed ZTE to sell it’s products again in the USA.
The US Commerce Department lifted the ban after ZTE deposited $400 million in a US bank escrow account as part of a settlement. Also, this settlement includes a $1 billion penalty that ZTE paid to the US Treasury in June.
In a statement, Commerce Secretary Wilbur Ross said that “The department will remain vigilant as we closely monitor ZTE’s actions to ensure compliance with all US laws and regulations.” He further added that The terms would allow the department to protect US national security.
The statement also adds that “ZTE should be put out of business. There is no ‘deal’ with a state-directed company that the Chinese government and Communist Party uses to spy and steal from us where Americans come out winning,”
A photograph circulating among employees around midnight showed ZTE’s new chief executive and 10 other managers each giving a thumbs-up to the news, which was flashed on a screen at the company, according to a person familiar with the matter.
ZTE relies on USA markets for selling its smartphones and other networking gears. However, they had ceased there all projects after the ban which happened back in April. Furthermore, the American president Donal Trump Tweeted in many that he closed ZTE. However he will let them reopen their business. But there is no such conclusion made yet.
Even after the News, on Thursday ZTE’s Hong Kong shares surged about 24 percent. Also, the ZTE’s US-listed shares fell down by 2.4 percent to $3.70 on Friday.
ZTE even had paid multiple US companies more than $2.3 billion in 2017, including Qualcomm, Intel, Broadcom and Texas Instruments.