Today, Secretary of Commerce Wilbur Ross announced that Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China ("ZTE Corporation") and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China ("ZTE Kangxun") (collectively, "ZTE") has placed $400 million in escrow at a US bank.
ZTE was recently allowed to resume some sales in the USA earlier this month, after paying a fine, replacing their entire executive board, and hiring a US affiliated monitor for business operations moving forward.
The Commerce Department in April banned U.S. companies from supplying ZTE with crucial components, forcing it to halt operations, after officials found further violations even after reaching a settlement in March of previous year over the initial complaints.
"ZTE should be put out of business". White House trade adviser Peter Navarro said last month Trump agreed to lift the ban as a goodwill gesture to Chinese President Xi Jinping. The Trump administration said that ZTE had lied to United States officials about punishing employees who violated United States sanctions against North Korea and Iran. ZTE paid $892 million in penalties to the United States past year in connection with the 2017 settlement and guilty plea.
ZTE's USA -listed shares fell 2.4 percent to $3.70 on Friday. Finally, ZTE also has replaced the entire board of directors and senior leadership for both entities. Last month, the Senate voted unanimously to reinstate the ban on the company citing national security concerns.
Trump calls the European Union, Russia, and China 'foes' of the US
Speaking on the BBC , she said: "He told me I should sue the European Union - not go into negotiations". His mother was born in Scotland, he said accurately, and "my father was Germany ".
~ Senators say Chinese company poses a national security threat to the USA ~.
The fate of the ZTE amendment is not clear.
Reuters reported on US demands for a deal on June 1, and on June 5, revealed that ZTE had signed a preliminary agreement with the Commerce Department, along with the fine and other terms.
ZTE has been in crisis since the United States first blocked it from buying USA parts in April.
The United States has formally lifted a crippling ban on exports to China's ZTE, rescuing the smartphone maker from the brink of collapse after it was denied key components.