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US lifts ZTE export ban
ZTE has another chance at redemption. The US Commerce Department has lifted the export ban on the Chinese mobile giant now that it has met all the terms required to get a full reprieve. Officials confirmed that ZTE had put $400 million in escrow on top of other requirements, including the payment of a $1 billion fine, replacing key leadership and accepting outside monitors that will ensure it honors US export controls.
ZTE clears last major hurdle to lifting US export ban
ZTE is almost done meeting the US' conditions for lifting an export ban... almost. The Chinese mobile and telecom gianthas signed an escrow agreement with the Commerce Department that represents the last major hurdle before it can get back to business as usual. As soon as ZTE deposits $400 million into the escrow, the US will let ZTE use American exports under a 10-year suspended denial order. The company's temporary waiver ends on August 1st, so you can expect the money to arrive within a couple of weeks.
ZTE replaces leadership to meet US demands
ZTE is fulfilling one of the US' key demands in its attempt to avoid a renewed export ban. Days before a 30-day deadline, the Chinese tech giant has replaced a whole suite of executives, including its CEO. All of the new leaders are company veterans, including new chief exec Xu Ziyang (who has been with ZTE since 1998). The move comes a few days after the company took on a new board of directors to meet American requirements, which also include paying a $1 billion fine, putting $400 million in escrow and accepting a US-chosen corporate monitor.
ZTE will pay $1 billion fine to beat US export ban
Tensions between the US government and Chinese smartphone maker ZTE seem to have abated, at least temporarily. US Commerce Secretary Wilbur Ross told CNBC this morning that the government has "struck a deal" with ZTE to end trade sanctions. The deal includes a $1 billion penalty and a US-picked compliance department that will embed within the company and monitor it going forward. More than that, within the next 30 days, ZTE will have to install a new board of directors and executive suite, whom the compliance committee will report to directly.
