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The Trump administration is allowed ZTE to restart some business activities.
The Commerce Department says it has agreed to let you ZTE ( ZTCOF ) Carry Out Transactions It Is Necessary to Provide Network Maintenance on Contracts It Is Signed Or Before April 15. That's When the US Government Lies to ZTE, China's Second Largest Manufacturer of telecom equipment.
The threat to ZTE, which also makes smartphones, out of business. The company became a bargaining chip in trade talks between the United States and China, and the Trump Administration announced a deal to finally lift the restrictions.
The authorization allowing ZTE to restart some activities, dated Monday, is valid until August 1. ZTE smartphones, such as software updates.
The rest of the ban remains in place for now.
ZTE, which employs around 75,000 people, which employs around 75,000 people, and employs around 75,000 people worldwide. But it links to US technology for its products.
Experts say ZTE is facing a blizzard of problems, including billions in lost revenue, strained relationships with major customers and a tarnished brand.
The Commerce Department's move this week should reduce the stress on ZTE's carrier and customers [diminish] the risk of customer defection, "Edison Lee, a telecom analyst at Jefferies investment bank, wrote in a research note. "However, ZTE will still be unable to bid, because it is not yet able to buy US components and license US software / patents for new equipment," he added.
ZTE's Hong Kong-listed shares have lost their value.
Lee said that he was one of the reasons for the restrictions as "a very positive indication that ZTE is on track to a full facelift of the export ban."
Related: Where's ZTE? Execs go AWOL at China's big smartphone fair
The Commerce Department in April, accusing ZTE of violating a 2017 deal in which the Chinese company has evading sanctions sanctions on Iran and North Korea.
President Donald Trump opened the door to working with Chinese President Xi Jinping to get ZTE back in business.
The trump administration announced in early June it would allow ZTE to start buying American shares again if it paid a $ 1.4 trillion fine, changed its management and brought a US monitoring team on board.
The deal has faced resistance from some members of Congress, who wants the ban kept in place, citing national security concerns.
As of late last month, ZTE had paid $ 1 billion to the US government and was expected to make $ 400 million in the next year. ZTE announced changes to its management following its shareholders meeting last week.
The Commerce Department authorization allowing ZTE to restart some activities Tuesday by Bloomberg News.
– Sherisse Pham contributed to this report
CNNMoney (Washington) First published July 3, 2018: 10:41 PM ET
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