US grants ZTE a temporary reprieve

The waivers does not authorise any new business

The US Commerce Department has granted a temporary reprieve to ZTE on Tuesday that allows China's number two telecommunications equipment maker to conduct business needed to maintain existing networks and equipment in the United States as it works toward the lifting of a US sales ban.

The authorisation from the US Commerce Department's Bureau of Industry and Services, dated July 2 and which was seen by Reuters, runs until August 1.

ZTE and spokespeople for the US Department of Commerce did not respond to requests for comment.

ZTE, which makes smart phones and networking gear, was forced to cease major operations in April after the United States slapped it with a supplier ban saying it broke an agreement to discipline executives who conspired to evade US sanctions on Iran and North Korea.

The company had also agreed to pay a US$1 billion penalty and put US$400 million in an escrow account as part of the deal to resume business with US suppliers - which provide almost a third of the components used in ZTE's equipment.

The escrow agreement is still pending, according to a source. Until it is executed, ZTE cannot deposit the US$400 million in escrow necessary to get the ban lifted.

While the denial order is still in place, the authorisation grants a waiver to some companies that do business with ZTE to do so for one month, a source told Reuters.

The waivers allow for a limited type of activity but does not authorise any new business.

Last month, a US Commerce Department official told Reuters that ZTE was expected to deposit the US$400 million in an escrow account in the "next couple of days," saying that was the last step before the ban could be lifted.

The uncertainty over the ban amid intensifying US-China trade tensions has hammered ZTE shares, which have cratered 60 per cent since trading resumed last month following a two-month hiatus, wiping out more than US$11 billion of the company's market valuation.

ZTE announced a new board last week in a radical management shakeup as part of a US$1.4 billion deal with the United States.

(Reporting by Karen Freifeld and Anirban Paul; writing by Tim Ahmann; editing by Leslie Adler and Marguerita Choy)

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags TelecommunicationsZTE

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.


Show Comments

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers


This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang


It really doesn’t get more “gaming laptop” than this.

Jack Jeffries


As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr


The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?