In July 2018, the US lifted its trade ban on Chinese telecom giant ZTE Corporation (ZTE), allowing it to once again procure from American companies’ critical parts and software that went into products such as its smartphones and networking gear, after three months of not being able to do so. The US Commerce Department cut a new agreement with ZTE that would lift the trade ban so long as ZTE overhauled its management, paid a US$1 billion fine, set up a compliance team to monitor the company’s actions, and put another US$400 million in escrow to pay as penalties should it err again. The regulators also threatened to impose a 10-year ban if ZTE did not meet the new terms. Earlier, in April 2018, the US Commerce Department had banned ZTE from purchasing components from US suppliers for seven years as it had allegedly violated the terms of a sanctions settlement that prevented sales of telecommunication equipment to Iran and North Korea. The department claimed that ZTE had paid full bonuses to employees who had engaged in the illegal conduct, failed to issue letters of reprimand, and lied about the practices to US authorities...

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