The U.S Commerce Department on Friday lifted the export ban that prevented American firms from dealing with China’s ZTE, allowing the Chinese firm to once again resume full business operations under strict monitoring.
The US Commerce Secretary Wilbur Ross made the announcement hours after signing the Escrow deal with ZTE and on receipt of the $400 million Escrow deposit. He further reiterated the department would “remain vigilant” in monitoring ZTE’s actions.
It is worth noting that this is more of a probationary announcement, the department has only succeeded in suspending the band, and not removing it, so the Department is expected to keep a tight watch on the firm using a compliance team selected by and answerable to the Department for a period of 10 years.
The announcement gives ZTE the full privilege to transact with American companies for the time been pending the final outcome of a Congress bill, that seeks to review Trump’s order lifting the ban. We are however not sure if the bill will seek re-instate the ban or not, and if it does, getting Trump’s accent might not be possible.
Wilbur Ross, Secretary of Commerce said:
While we lifted the ban on ZTE, the Department will remain vigilant as we closely monitor ZTE’s actions to ensure compliance with all U.S. laws and regulations. Three interlocking elements – a suspended denial order, the $400 million in escrow, and a compliance team selected by and answerable to the Department – will allow the Department to protect U.S. national security