United States allows ZTE to temporarily resume some commercial activities

The Trump administration lets ZTE Corp resume operations while the United States weighs on the Chinese telecommunications company's seven-year ban, according to a document obtained by Bloomberg News.

ZTE authorization by the Department of Commerce The Bureau of Industry and Security is valid from July 2nd to August 1st. Although it 's not clear immediately when a standing order will follow, a person familiar with the case said that ZTE should comply with US requirements by August 1st.

The title of ZTE crossed Tuesday its bar of 10% of the day, the biggest jump for more than a year.

This authorization allows the Chinese equipment supplier number 2 of telecom equipment to support existing networks or equipment under contract signed on or before April 15, when the United States prevented companies from selling components at ZTE. sanctions against Iran and North Korea. The ban had forced ZTE to announce that it was closing.

President Donald Trump changed course in May, stating that he was reconsidering the sanctions on ZTE as a personal favor of Chinese President Xi Jinping. Later this month, the Trump administration announced that it would allow the company to stay in business after paying a $ 1.3 billion fine, changing its management and providing "High level security guarantees".

This flip-flop has raised concerns about the use of ZTE as a currency in US-China trade negotiations to avoid a tariff dispute. These talks are stalled and the United States is expected to charge $ 34 billion worth of Chinese goods on Friday, and $ 16 billion could follow. China said it would fight back against dollar against US imports.

ZTE took a big step forward by fulfilling the White House requirements by firing off all of its office and naming a new president last week. A US trade official said on June 22 that ZTE was about to break through the last hurdle by paying $ 400 million in escrow.

The new management of ZTE must now restore the confidence of the telephone companies and companies. The company would face at least $ 3 billion in total losses from the moratorium by several months, which cut off the flow of chips and other components it needed to fabricate its networking equipment and smartphones.

In Washington, a bipartisan group of lawmakers remains concerned about ZTE's threat to US national security and is pushing for legislation to reinstate tougher sanctions. Legislators are ready to resume negotiations on legislation that will attempt to balance concerns that ZTE poses a security risk with efforts to revive the business.