US Senate abandons ZTE sanctions as NDAA passes without such provisions
At the beginning of the month, the Trump administration together with the Commerce Department has reached an agreement with ZTE. Sanctions would be lifted if the Chinese company would agree to pay a $1 billion penalty, put $400 million in escrow, shake-up its management, and accept a US-selected corporate monitor.
While the deal faced strong opposition and efforts against it continued, ZTE continued complying. A new management has been appointed on July 4, the fine has been paid, an escrow agreement has been signed, and the US-selected monitor has been installed.
In the light of full compliance with the terms of the agreement, the House of Representatives passed a version of the National Defense Authorization Act (NDAA) without any sanctions for ZTE, in return for the Committee on Foreign Investment in the US to gain more oversight.
As a reminder, back in May, the US banned ZTE from working with US companies. The reasons behind the ban were reported ZTE shippments of US-made parts to Iran and North Korea, and subsequently the company concealing the fact that involved executives were rewarded large amounts in bonuses.