US government lets ZTE resume trading with US companies after payment

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The US government has asked ZTE to immediately pay $400 million, after which the company will be allowed to definitively trade with American companies. ZTE was not allowed to do that for several months.

Until ZTE pays the amount, the US government will continue to maintain the blockade, reports the Department of Commerce. That payment will probably be made on Thursday, so the company hopes that it will soon be able to trade with American companies again.

ZTE hopes the agreement will mark the end of the months-long trade blockade. It is the most severe punishment the US government has ever imposed on a company in such a case and the department hopes it will deter other companies from violating agreements with the US government.

The US banned US companies from supplying components to ZTE because the Chinese company evaded US sanctions by making deliveries to Iran. The trade ban prevented it from exporting or importing goods or services from US companies, such as Qualcomm processors. ZTE had been able to trade restricted for some time.

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