The United States lifts the ban that prevented ZTE from doing business with US suppliers

The Trump administration on Friday lifted the ban on the Chinese telecommunications company ZTE that had pushed the company to the brink of financial collapse by preventing it to acquire parts and software from American companies.

punishing ZTE for failing to comply with a previous agreement relating to the violation of US sanctions against Iran and North Korea, was withdrawn after the company met the terms of a settlement, Commerce said in a statement. ZTE had to pay a fine of $ 1 billion, put $ 400 million in escrow with a US bank, review its leadership and allow the installation of a team of compliance controllers in the company. 39, business for 10 years.

Wilbur Ross, Commerce Secretary, said in a statement that ZTE, China's second largest telecommunications company after Huawei, would remain under closer scrutiny even after being dropped from the ministry's "refused people"

"As we lift the ban on ZTE, the ministry will remain vigilant in closely monitoring ZTE's actions to ensure compliance with all US laws and regulations," said Mr. Ross [19659005]. to requests for comments. Its shares rose nearly 24 percent in Hong Kong on Thursday after the Commerce Department declared that it was about to lift the ban .

The United States found ZTE in violation of the sanctions against Iran and North Korea in 2016 imposed a $ 892 million penalty on the company last year.

In April, as trade relations between the United States and China increased, the Commerce Department banned US suppliers of ZTE from rectifying the issue of sanctions. Because ZTE relies heavily on US components to produce its smartphones and telecommunications equipment, President Trump wrote on Twitter that he and Chinese President Xi Jinping were working together on a lifeline for ZTE. Mr. Trump also said that he had ordered the Commerce Department to "do things". An agreement was announced on June 7th.

The administration agreement to save ZTE has been criticized by lawmakers of both parties, who argue that this puts national security at risk. Last month, the Senate approved, as part of a larger defense bill, a measure that would restore stiff penalties for the company. However, it is not clear if the measure will take effect.