US government resumes ZTE embargo

Fines, Security Guarantees and Management Changes Government demands, ZTE can continue its business with US companies.

The Chinese equipment manufacturer and smartphone supplier ZTE is allowed to resume operations with US companies. ZTE paid a $ 1 billion fine for sanctions and added $ 400 million to a trust account, the US Department of Commerce said Friday. So the conditions are met in order to lift the business restrictions.

The United States imposed fines on the telecommunications group for alleged illegal cases with Iran and North Korea and denied access to US technology for seven years in April. Without the chips for its smartphones, ZTE had to close then large parts of the production. The company relies heavily on supplies from US manufacturers such as Qualcomm or Intel.

Action too lax

In May, US President Donald Trump took part in the conflict, which became more and more a toy in the trade dispute between Washington and Beijing. He reported that Chinese President Xi Jinping "was a personal favor" and said that he wanted to find a solution for ZTE.

Shortly after, the US Department of Commerce agreed with the company a regulation that included not only penalties, but also management changes and extended security guarantees. The agreement is in the US domestic policy, however, very controversial Democrats Democrats and Republicans accuse the Trump government of too lax action.
( dpa ) /

(BME)