ZTE Soars After U.S. Signs Deal to Lift Tech-Purchase Ban
- Ban will be lifted after ZTE completes $400 mln escrow payment
- Settlement is ‘toughest’ penalty Commerce has ever imposed
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ZTE Corp.’s shares surged after it inked an agreement with the Trump administration to allow the company to resume doing business with American suppliers, meeting a key Chinese government demand amid escalating tensions between the world’s two largest economies.
The Chinese telecoms gear-maker signed an escrow agreement with the Commerce Department and a ban on U.S. technology purchases will lift as soon as ZTE deposits $400 million, the department said in an emailed statement Wednesday. A person familiar with the matter said the escrow payment should be completed within a day.