ZTE Ban Lifted For Now But Bigger Challenges On the Horizon
After being swallowed up by a trade ban issued from the US Commerce Department in April, ZTE has finally received a bit of good news. The Chinese telecom giant will once again be able to access and trade with American technology companies, but colossal net losses, an awaited meeting from the House, and a potential roadblock from a presidential veto mean there is still a long road ahead.
The ban came from failing to follow through with reparations after violating Iran and North Korea sanctions. After the ban in April, ZTE was essentially cut off from major technology partners such as Qualcomm, leaving many of their products dead in the water. President Trump then offered to cut a deal, allowing ZTE to pay a $1 billion fine and put $400 million in an escrow account.
However, last night the US Senate circumvented the entire situation and passed an annual defense bill that included a measure to undo the decision to lift the ban.