U.S. agrees to lift ban on ZTE after signing escrow agreement

U.S. agrees to lift ban on ZTE after signing escrow agreement
ZTE is very close to being able to continue to do business in the United States after months of negotiations with the government. Although the Chinese company will be the subject of draconian measures from the Commerce Department, ZTE is willing to meet all demands just to be able to be present on the U.S. market.

A new report by Bloomberg states that ZTE has taken another important step toward lifting the U.S. ban on the Chinese company doing business with local suppliers. Apparently, ZTE has just signed an escrow agreement with the Commerce Department, which will allow the company to once again buy components from American suppliers if they deposit $400 million in escrow.


Although ZTE is already operating in the United States on a temporary waiver until August 1, the ban could be lifted as early as tomorrow when the escrow payment is expected to be completed.

The escrow agreement is the last step that the Commerce Department imposed on the Chinese company before lifting the ban after ZTE sacked all members of its board in the U.S. last month.

source: Bloomberg

FEATURED VIDEO

20 Comments

1. warrenellis93

Posts: 521; Member since: Jul 21, 2011

so when do we get the blade v9 pro

2. domfonusr

Posts: 963; Member since: Jan 17, 2014

When I broke the news to my Mom that ZTE had been caught breaking the export ban of US tech to Iran and North Korea, and that they wouldn't be doing business with American companies any more, she looked at me, then looked at her ZTE Grand X 3 from Cricket, and asked, "Not that I need a new phone anytime soon, but where am I going to get another phone like this one?" I proceeded to list all of the Android OEM's that were making Cricket devices that are cheap but good, like Motorola and LG and so on... but she turned her nose up at all of them, and said, "What am I gonna do for a phone if there's no ZTE? I love these phones!" So, Mom started following the news on the topic. When Trump said that he thought the US could work out a deal with ZTE, Mom was very happy. When the Commerce Department announced the temporary waiver, Mom laughed at me for being "a worry-wart." Well, Mom will be happy and I will be eating crow with this news...

4. TrumpsRuinedAmerica

Posts: 114; Member since: Dec 31, 2017

Is it too late to see if you can come out of someone else’s uterus?

6. domfonusr

Posts: 963; Member since: Jan 17, 2014

Ummm… yeah, I think its way too late for that. But I love my Mom and Dad, even if they are into Trump. I don't hate anybody. I don't hate the people who love Trump... I don't hate the people who hate Trump... and I do my very best not to be consumed by hatred for Trump or anybody else for that matter, no matter how much I may disagree with them.

7. warrenellis93

Posts: 521; Member since: Jul 21, 2011

well said,

18. ZombieHunter

Posts: 259; Member since: Oct 13, 2013

Good!

9. worldpeace

Posts: 3034; Member since: Apr 15, 2016

"export ban of US tech" You mean "Chinese tech"?

11. domfonusr

Posts: 963; Member since: Jan 17, 2014

Not referring to the whole ZTE phone, no... just the Android OS (from Google in Mountain View, CA) and the Snapdragon processor (from Qualcomm in San Diego area, CA) and perhaps a few other parts. I fully understand that ZTE makes whole devices, but yes, the United States is the supplying nation for about a third of the parts and components (hardware or software) by value, on average, according to other articles I've read on the subject. Now, do I think the Chinese companies will develop their own replacements for these US components? Yes, I do. It has been happening for a while now. There are numerous forked Androids out there of Chinese origin, and I am sure they will work on making something that isn't based on Android, too. Huawei has even produced their own line of SoC's in the Kirin series, and certainly others will follow suit. Now, the big question is this: will they do it without reverse-engineering existing US parts and components? That is debatable in my eyes. Without the invention of gunpowder by the ancient Chinese, Western civilization would never have turned out the way it did, with the existing power structures and alliances, and that is because Europe appropriated the idea of gunpowder from China. However, the reverse is also true; modern China, or modern Chinese companies, at least, has/have appropriated ideas from American companies in recent decades in order to bolster their own positions in technology. There is nothing new about this. Yes, sometimes the laws are broken on one side or the other. Yes, there is IP theft, and China has to address that, but then I look at BLU products, and I'm like...

3. domfonusr

Posts: 963; Member since: Jan 17, 2014

When I broke the news to my Mom that ZTE had been caught breaking the export ban of US tech to Iran and North Korea, and that they wouldn't be doing business with American companies any more, she looked at me, then looked at her ZTE Grand X 3 from Cricket, and asked, "Not that I need a new phone anytime soon, but where am I going to get another phone like this one?" I proceeded to list all of the Android OEM's that were making Cricket devices that are cheap but good, like Motorola and LG and so on... but she turned her nose up at all of them, and said, "What am I gonna do for a phone if there's no ZTE? I love these phones!" So, Mom started following the news on the topic. When Trump said that he thought the US could work out a deal with ZTE, Mom was very happy. When the Commerce Department announced the temporary waiver, Mom laughed at me for being "a worry-wart." Well, Mom will be happy and I will be eating crow with this news...

5. domfonusr

Posts: 963; Member since: Jan 17, 2014

Sorry for the double post everybody.... my PC is doing funny things...

8. worldpeace

Posts: 3034; Member since: Apr 15, 2016

It's not your PC, it's phonearena's bug. Sometime when I'm posting comment it show error "you can only post 1 comment every 2 second" (or something like that), while I'm obviously only post it one time. Obviously that's PA effort to prevent/hide this bug, but it's still happen when the internet is slow

20. WingMan

Posts: 261; Member since: Mar 28, 2008

It is probably your browser or some random extension doing this. I've never had issues and been here for a while.

13. jsjammu

Posts: 169; Member since: Nov 13, 2014

How is this not pay to play? Donald Trump said that about Clinton Foundation but now it's okay to pay and play..if ZTE is a threat they are a threat. How's the money whether it's fine or escrow suppose to mitigate that threat?

14. domfonusr

Posts: 963; Member since: Jan 17, 2014

That is a great question. I think people who support Trump will probably say that this is different because the money from ZTE goes into the coffers of the United States, and not the personal account of Trump, whereas the Uranium One thing with the Clinton Foundation was Russia paying the Clinton Foundation, which some would argue was not as protected from the Clintons being able to withdraw from it. In order to be intellectually fair, I can imagine that ZTE may have privately approached Trump and offered to "grease the wheels" with a direct ZTE-to-Trump payment that was not in view of the public, but that would border on conspiracy theory at this point, especially since I have no evidence that any such transaction has taken place except to say that I can imagine such a thing, and I am not a big proponent of conspiracy theories due to Occam's Razor. Complex conspiracies at the top are rare... they have to be rare because they are unusually complicated and under scrutiny... but that doesn't mean that there can't be one.

16. JimmieCrakCorn

Posts: 143; Member since: Nov 20, 2017

Keep a close eye on them Chinese engineers and techs working in your office. They are sleazy lowlife spies trying to steal US intellectual properties and tech secrets and transmit them back to their government in China who is desperately trying to dominate and destroy America.

17. slim3bdo

Posts: 113; Member since: Jun 05, 2017

So basically the us government was blackmailing zte for money :)))))))

19. ZombieHunter

Posts: 259; Member since: Oct 13, 2013

Hey, it worked!

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories