The ZTE title surges by more than 20% as a result of the bankruptcy of the US ban

<img src = "https://i2.cdn.turner.com/money/dam/assets/180522145619-zte-stop-light-1024×576.jpg" width = "780" height = "439" alt = "ZTE shares climbed more than 20% on Thursday after the US government announced that the Chinese company would soon break through the last major obstacle to the elimination of a crippling ban. 19659005] ZTE ( ZTCOF ) which manufactures smartphones and telecommunication equipment, was in crisis as the US Department of Commerce prevented US companies from selling it essential components in April.The move forced him to stop almost all his operations and fueled tensions between the Chinese and US governments.

After Beijing's intervention, the Trump administration concludes an agreement with ZTE to lift the ban in exchange for a serial e other sanctions, including the reorganization of management, the establishment of a US surveillance team and the payment of a fine of $ 1 billion.

Related: ZTE appoints new Chinese CEO to race to meet US demands

The agreement also requires ZTE, which employs approximately 75,000 people, to put $ 400 million into an escrow account.

The Commerce Department said Wednesday that it had signed the escrow agreement with ZTE and once it will receive the money, it will allow ZTE to resume the purchase of parts from US companies. ZTE paid heavy fines last month and appointed a new CEO and other executives last week.

ZTE should be able to resume operations next week, but the "road to recovery will still be difficult," Edison Lee, an analyst at Jefferies, said in a research note.

ZTE did not immediately respond to a request for comment.

The US government said it imposed the ban on ZTE in April because the company had violated a previous agreement sanctioning it for avoiding sanctions against Iran and North Korea.

Even with the removal of the ban, ZTE will still need to gain the trust of its customers and customers, operate unused production lines and reassure investors by allowing them to make healthy profits at the same time. 39; future.

Related: Where is ZTE? ZTE is expected to give guidance on the impact of the US embargo next month, and announce second and third quarter profits that "will likely incorporate a lot of exceptional costs," Lee said. .

ZTE shares on the Hong Kong Stock Exchange were suspended immediately following the announcement of the ban in April. They fell when they resumed their activities last month.

Even with Thursday's rally, stocks are still down by almost 50% compared to the suspension.

The company 's deal with the Trump administration has met resistance from some members of Congress, who want the ban to be upheld, citing national security concerns.

CNNMoney (Hong Kong) First published July 12, 2018: 1:11 AM ET