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!

Or

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.
Reuters

Reuters

ARN
Show Comments

Brand Post

Bitdefender 2019

Shop safely with our award-winning security solution. Protect yourself this Black Friday and get the exclusive Black Friday discount for Bitdefender 2019!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?