After months of negotiating with the U.S. government, it looks like ZTE is very close to getting permission to continue doing business in the country once again.
The last time we heard about ZTE was when the Chinese manufacturer complied with the demands of the U.S. The tech company had replaced several of its executives, paid a $ 1 billion fine, and accepted a US-chosen corporate monitor. All these were part of the demands the U.S. Commerce Department imposed on the Chinese manufacturer to allow them to operate in the country once again.
Earlier today, Bloomberg reported that ZTE has just complied with another demand set by the government. The report showed that ZTE has signed an escrow agreement that would allow them to continue buying components from American suppliers. In exchange for this, the Commerce Department required the manufacturer to deposit $ 400 million in escrow.
The company was given a temporary waiver to continue operating in the country. This temporary waiver, unfortunately, is only valid until August 1st. There are reports, however, that show the ban could be lifted by tomorrow since this is the day the escrow payment is said to be completed.
Once the escrow agreement is finalized, the Commerce Department will be allowing the Chinese manufacturer to continue its operations in the country. After all, this is the last step they required as part of its negotiations. It just goes to show that ZTE is taking this demand very seriously.