US ban on ZTE has been Temporarily Lifted Until August 1

ZTE is back in business in the US as Trump administration has lifted restrictions imposed on it. However, the US ban on ZTE operations is temporarily lifted. The Chinese company, ZTE is now allowed to operate its existing networks.

ZTE will now be able to provide support to handset customers who took out a contract before 15 April. The transfer of the fund to and from ZTE is also permitted.

ZTE phones could soon start getting updates as US ban on ZTE is Lifted

According to Reuters, the abatement was issued by US Department of Commerce’s Bureau of Industry and Services, which applies from 1 July until 1 August.

US ban on ZTE was a major set back on the company. Now the Chinese smartphone maker has agreed to pay $1 billion fine to the US. US government has also asked ZTE to pay further $400 million for future transgressions after being banned.

The ban was imposed because the Chinese company apparently failed to adhere to the terms of a March 2017 settlement in a case relating to violations of trade sanctions covering Iran. ZTE, which is heavily reliant on US components for its products, was forced to halt its manufacturing operations altogether in May.

ZTE, China’s second largest telecom company is currently on life support. Without crucial hardware components, ZTE’s factories and most of its 75,000 employees are sitting idle. The ban stops U.S. companies like Google, Qualcomm, and Intel from doing any kind of business with ZTE. By some estimates, ZTE uses components from American suppliers is up to 90 per cent of its products.

Also Read: Trump Let ZTE reopen in Exchange of Fine and Security Guarantees

Fizza Atique

Fizza Atique is a Tech writer specializing in the intersection of tech and culture. She likes photography, VR, electronic music, coffee, and baking.
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