POST TIME: 5 July, 2018 00:00 00 AM / LAST MODIFIED: 4 July, 2018 11:44:13 PM
US lets ZTE resume some activity

US lets ZTE resume some activity

The United States has temporarily allowed Chinese telecoms company ZTE to resume some activities while it works to meet conditions set by Washington in a politically charged settlement reached last month, reports AFP from Washington.

In a Federal Register notice released Tuesday, the Commerce Department gave ZTE until August 1 to continue supporting its existing US equipment and networks, lifting some restrictions put in place in April that had brought the company to the brink of collapse.

The waiver does not permit companies to begin any new business with ZTE, however.

The move follows President Donald Trump’s decision in May to spare ZTE as a personal favor to Chinese President Xi Jinping.

In April, the Commerce Department banned the sale of crucial US components to the company after finding it had repeatedly lied and failed to take action against employees responsible for sanctions violations.

But in an agreement struck last month, Washington offered to lift the ban if the company agreed to pay an additional $1 billion fine, replace its board of directors, retain outside monitors and put $400 million in escrow to cover any future penalties.

ZTE took one of those steps last week, removing its board of directors, naming eight new board members and firing top executives.