The U.S. Department of Commerce has finally lifted a ban on U.S. companies selling goods to ZTE Corp, allowing China’s second-largest telecommunications equipment maker to resume business.
The Chinese telecoms manufacturer can now continue doing business as usual, import US-made electronics and parts, and integrate them into its own solution.
In order to get the ban lifted, ZTE had three things to do:
- pay a fine of $1 billion;
- leave another $400 million in escrow, just in case it repeats the offense; and
- change its management, completely.
The company has done all three things and can now continue working.
“The department will remain vigilant as we closely monitor ZTE’s actions to ensure compliance with all U.S. laws and regulations,” Commerce Secretary Wilbur Ross said in a statement.
But not everyone was pleased with the ban being lifted.
“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,” Rubio said in a statement.
US companies were banned from doing business with ZTE because the Chinese company broke an agreement it had with the US, and exported its goods to countries under US embargo – North Korea and Iran. Once the ban was in place, ZTE almost went completely out of business.
