The Trump administration has temporarily allowed Chinese telecoms equipment provider ZTE to resume some business activities while it works to meet the White House's conditions.?
The authorization from the Commerce Department's Bureau of Industry and Security, dated July 2, is valid until August 1.?
ZTE was forced to cease major business operations, after the Commerce Department?announced?a seven-year ban on US companies selling parts to ZTE for alleged violations of the US sanctions against Iran and the?Democratic People's Republic of Korea (DPRK) in mid-April.
Later in May, Trump?floated a plan to fine ZTE up to 1.3 billion US dollars and shake up its management as his administration considered rolling back more severe penalties that have crippled the company.
The company reached a deal with the US early in June, agreeing to pay a one billion US dollar penalty and putting 400 million US dollars in escrow, which it will forfeit if it violates the deal.??
As part of the deal, ZTE announced a new board last week in a management shakeup.?
The company has lost over three billion dollars since the April 15 ban on doing business with US suppliers, said ZTE.
Based in the southern Chinese city of Shenzhen, ZTE is a global provider of telecom equipment, networking solutions and one of the world's fastest-growing smartphone manufacturers. The firm needs US components for its mobile phones and network equipment.
US companies provide an estimated 25 to 30 percent of components in ZTE’s equipment.
Now the company will be allowed to resume business with US companies, including chipmaker Qualcomm Inc.
