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ZTE is officially and truly back in business
August 09, 2025
It’s been a whirlwind ride forZTEover the past several weeks, with the United States government issuing a ban on American companies doing business with the Chinese smartphone manufacturer.
However, today (viaReuters) the United States officially lifted that ban, which will allow ZTE to resume its business practices, including those with American companies.
But just because the ban is gone doesn’t mean that ZTE is entirely in the clear. “While we lifted the ban on ZTE, [the Commerce Department] will remain vigilant as we closely monitor ZTE’s actions to ensure compliance with all U.S. laws and regulations,” Commerce Secretary Wilbur Ross said in a statement.
As part of the deal to lift the ban, ZTE had to paya $1 billion penaltyand place $400 million in an escrow account that it will lose if it is caught in any wrongdoing related to the previous restrictions.
ZTE’s troubles started when it wascaught red-handedviolating various international trade laws. The company then dug itself an even deeper hole when it was found trying to hide its violations.
In response to this flagrant illegal activity, the Commerce Department followed through on its previously-decided penalty for such violations: a full ban on working with any American entities, among other sanctions.
Whether ZTE thought that the United States would never institute such a ban or if it was simply playing fast-and-loose we may never know. But ZTE understood the severity of its predicament when industry experts began seriously discussingZTE closing its doors for goodafter the ban essentially destroyed its ability to make and sell smartphones.
In a last-minute Hail Mary,the Chinese government pleadedwith United States President Donald Trump to lift the ban, citing the loss of thousands of Chinese jobs should ZTE fold. Trump decided to lift the ban, butU.S. Senators foughtto uphold the Commerce Department’s decision.
Eventually, Trump won out, and ZTE was given the OK. Today, that decision becomes official, and ZTE is back in business.
Time will tell if ZTE can prove that it appreciates this profound leniency by conducting its business strictly within the letter of the law.
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