ZTE finally makes escrow payment to get out of US imports ban
After three months under an order prohibiting the company from buying anything from United States businesses, ZTE has fully fulfilled the terms of its revised raft of punishments as issued by the Commerce Department.
The Chinese tech manufacturer has signed an escrow agreement with the agency that will keep $400 million in trust. The firm has also complied with other conditions such as paying a $1 billion fine, changing its executive management. It will still need to select a compliance monitor from the United States, but for the most part, the difficult duties are done with.
The imports ban will be suspended for 10 years and may be lifted entirely if ZTE maintains good behavior.
The ban has taken its toll on the company as it was not able to procure components for its telecommunications and consumer electronic products nor was it able to update the software on them. Major operations have been shuttered for weeks which the company estimates has generated at least $3 billion in losses.
Sources to Bloomberg say that ZTE met with Commerce Department officials on Monday to discuss a path forward on the deal.