ZTE is a step closer to resuming business with the US, after the US Department of Commerce signed the earlier announced escrow agreement with the company. Once ZTE deposits USD 400 million in the escrow account, the ban on exports to ZTE from the US will be lifted, the department said.
The USD 400 million will be held to cover any possible future violations of US trade law by ZTE. The company remains subject to a 10-year denial order in the US, but the government agreed to suspend this following ZTE's pledge to change its management, reform its practices and subject itself to regular monitoring.
The original denial order, halting all exports from the US to ZTE, started in April for violations of US trade sanctions against Iran and a subsequent compliance order. ZTE was forced to cease all its operations as a result, and is thought to have lost billions of dollars in the past three months from the government restrictions.
