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ZTE's Export Ban May Have Been Lifted But It's Not Getting Off Scot-free

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It's official! Chinese tech giant, ZTE, has another shot at doing business in the U.S. shores.

After its compliance with the demands of the U.S. Commerce Department, the export ban on ZTE has been lifted. The government agency confirmed earlier reports that the Chinese manufacturer had met all of its terms, thus gaining them a full reprieve. Among the demands that were met include replacing its CEOs, putting $400 million in escrow, paying a $1 billion fine, and acceptance of outside monitors to ensure ZTE honors the export controls set by the U.S.

The government agency, however, has clarified this report that this does not exempt ZTE from monitoring. As a matter of fact, the decision is considered more as a probation for the Chinese manufacturer. The Commerce Department has decided to suspend the ban instead of eradicating it completely.

By putting ZTE under a probation period, the government agency can continue to monitor ZTE's affairs over a 10-year suspension period. During this time, ZTE is expected to fully comply with the demands so that it is not placed under another ban. The former ban was only set for seven years.

Today's news doesn't lead ZTE completely out of the radar. The U.S. Congress is still coming up with a bill that would reinstate the ban, if the Senate has its way. Right now, this is still not approved and there's no telling whether or not the President will sign a ban to resurrect the restrictions on trading. But if anything, today's news gives ZTE another chance to prove itself.

Even though ZTE is not completely out of scrutiny, at least it gives them a chance to continue doing business instead of facing a ban that would lead to a loss of at least $3 billion.



Source: Engadget

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1 comments:

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  1. Of course the department of commerce would put free trade over national security.

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