It finally might be over… soon. ZTE has been through a lot in the past several weeks following a severe ban on using products from the United States, but now a deal has finally been signed.
A report today from Bloomberg confirms that ZTE and the US have finally settled on a deal and signed to lift trade restrictions on the Chinese company, once again allowing it to use products sourced from the US. The deal will be official soon, with the final action being a $400 million payment in escrow and an external monitor being named for the company.
This deal is largely the same as the one that was reported on last month, where ZTE has paid a $1 billion fine, largely overhauling its management, and the $400 million payment held in escrow. Sources say that ZTE will be making that payment “within a day.”
“Once the monitor is selected and brought on board, the three-pronged compliance regime — the new 10-year suspended denial order, the $400 million escrow, and the monitor — will be in place,” Commerce said in the statement. “The ZTE settlement represents the toughest penalty and strictest compliance regime the Department has ever imposed in such a case. It will deter future bad actors and ensure the Department is able to protect the United States from those that would do us harm.”
It’s been a long road full of twists and turns for ZTE with this ban. For the company’s own sake, we can only hope things work out this time.
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