Commerce Department Formally Lifts ZTE Ban

The Department of Commerce formally lifted its ban on U.S. companies selling (see 1804170018) telecom software and equipment to ZTE, after the Chinese telecom equipment manufacturer placed $400 million in escrow as part of a deal on alternative concessions as punishment for selling equipment to Iran and North Korea and misleading the U.S. government. Commerce now suspends the ban during a 10-year “probationary period” also conditioned on an additional $1 billion. The Bureau of Industry and Security can reactivate the ban if ZTE again violates sanctions during its probation. “The Department will remain vigilant as we closely monitor ZTE’s actions to ensure compliance,” said Commerce Secretary Wilbur Ross Friday. President Donald Trump became closely involved in May in the bid to relax the ban, sparking outcry that culminated in passage of anti-ZTE language in the House and Senate's FY 2019 National Defense Authorization Act. Congress began working last week to reconcile the two HR-5515 versions (see 1807110067).