In April, the US had implemented a ban on the operations of a Chinese company, ZTE. This order was initiated when the US found that ZTE had sabotaged the rules of trade bans on North Korea and Iran. Due to this, ZTE was restricted to buy parts from any of the US suppliers. This ban has the potential to severely affect the company, leading to its destruction.
However, the Trump administration has now decided to loosen some of the restrictions implemented on the tech giant of China. According to the new rules, ZTE will be temporarily allowed to initiate business transactions with the US suppliers.
The US and China are going through a rough trade war, which is becoming complex with every passing day. The positive news for the Chinese company broke through the immense trade tensions. The US Department of Commerce has revealed that the Chinese company will be allowed to operate between 2nd July and 1st August.
According to the new rules, ZTE, which is owned by the state, will now be able to continue with the operation of the present activities while supporting the current handsets. These activities will be allowed apart from a few other operations. However, the US Department of Commerce has cleared that the ban that was initiated in April will continue without any exception.
On the contrary, ZTE is putting undivided attention to abide by the set of rules presented by the US government. The tech giant is hoping to resume the previous pace of the business in the country. However, the US has asked the company to pay a whopping $1 billion penalty and also recruit a compliance team from the US along with redesigning the current board of management.
The fate of the organization is at stake as the US will not loosen the grip on the ban.