U.S. Lifts Ban on Sales of Parts to Chinese Company ZTE

On Friday, July 13, the U.S. Department of Commerce announced that it has lifted the ban on American companies collaborating with the Chinese company ZTE. According to Reuters, the U.S. Department of Commerce stated that ZTE has placed $400 million in escrow with an American bank as part of last month's agreement to ensure compliance with regulations. Last month, ZTE paid a $1 billion fine. The Chinese company was accused of providing sensitive technologies to Tehran and Pyongyang. ZTE is composed of two groups: Zhongxing Telecommunications Equipment Corporation and ZTE Kangjun Communications Company. It is the second-largest telecommunications company in China. U.S. Secretary of Commerce Wilbur Ross stated that the department will closely monitor ZTE to ensure compliance with U.S. laws and regulations. ZTE, which relies on American manufacturers for its smartphone production, had shut down parts of its production following U.S. sanctions in April of this year. The U.S. Department of Commerce fined ZTE in April for violating sanctions against Iran and North Korea, stating that American companies were not allowed to collaborate with it. After ZTE protested the imposed restrictions, the Trump administration adopted a more lenient approach. Under the agreements reached, ZTE paid a $1 billion fine and changed its management to obtain permission to purchase equipment from American companies. However, some Republicans in Congress have criticized the approach towards ZTE.