U.S. Commerce Department has lifted ZTE’s trade ban
It looks like ZTE may be in a celebratory mood today after the U.S. Commerce Department announced its latest decision with its export ban.
According to the report, the export ban on the Chinese manufacturer has been lifted after it was able to meet all the terms demanded by the government. Among the actions that ZTE had taken include paying a $1 billion fine, accepting outside monitors, replacing its CEOs, and putting $400 million in escrow.
But to say that ZTE is completely off the hook would be an understatement. The latest decision does not completely remove the export ban from ZTE. Instead, the Commerce Department has placed ZTE under a probation period of 10 years. This means that the monitors it put in place will have to observe the Chinese company throughout the period to make sure it keeps its end of the bargain.
Apart from an ongoing suspension period, there is a threat that ZTE also has to deal with constantly. According to Engadget, Congress is still attempting to reconcile a bill that would reinstate the ban once the U.S. legislature department has its way. But there is still no assurance that this harmonized bill will include this measure. In addition to this, there is no guarantee that President Donald Trump will be signing a bill that would revive the trade ban.
For now, ZTE is safe and can celebrate with the latest decision. Along with this, the company can continue operating in the U.S. and not have to deal with a ban that would cost them almost $3 billion.