ZTE clears last major hurdle, signs Escrow agreement with U.S.

ZTE clears last major hurdle, signs Escrow agreement with U.S.

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At last, we might be seeing the last there is in the USA versus ZTE saga which has lasted several months. A statement from the US Commerce Dept suggests ZTE might have met all the conditions needed for the Commerce Dept to fully lift the supply ban on the Chinese cooperation.

Although ZTE at the moment can do partial transactions with suppliers in the US, it was required as part of the agreement reached with Commerce dept to among other conditions pay a $1.3 billion fine, in addition to a $400 million escrow to be held for a period of 10 years. The Supply ban becomes effective once again, and the cooperation forfeits the $400million escrow to the US if it backtracks on any of the agreement with the US for the period in view.

ZTE already met virtually all the agreement, including replacing its top management executives. The US Commerce Department in a tweet says it has signed the Escrow agreement with the Chinese cooperation, saying it will withdraw the ban on the cooperation on receipt of the $400 million Escrow deposit. Sources say ZTE should make the deposit within 24hrs.

 

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