US Takes Steps to Lift Ban on China ZTE

Us Department of Commerce, is finally taking steps to lift the sales ban on China’s ZTE. ZTE, a Chinese telecommunication company, signed an agreement with the US Commerce Department to make a deposit of 400 million US dollars before it can resume its operations.

The escrow agreement signed between the two parties is among the US 1.4 billion US dollars settlement that was reached in order to allow the Chinese company to transact business with US suppliers. The escrow account, an account held by a third party would give the United States extra 400 million dollars should the Chinese default in payment.

Chinese ZTE, in April was slapped with a sales ban from the US Department of Commerce after investigations proved that, they had refused to reprimand their employees for engaging in illegal shipment of US equipment to North Korea and Iran.