US temporary lifts ban on ZTE, allows to update phones software/security patches
It was earlier reported that the US Govt stops ZTE from production for failing to comply with the penalties it received for violating US sanctions to Iran and North Korea.
Although, the company pleaded guilty last year to conspiring to violate US sanctions by shipping US-made goods and technology to Iran unauthorized.
The US Commerce Department has temporarily lifted part of the ban on ZTE. Meanwhile, the company had to pay the sum of $1 billion as fine, therefore authorized by the United States to continue supporting the existing equipment and consumer devices.
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This also is designed to keep the company’s infrastructure running and to allow it to deliver some software/security patches and updates to its smartphones.
Following the ban, the company has been unable to procure necessary parts (Qualcomm chipsets) and software needed to operate its business and sell products which were a bad business for them on US soil. But with the new order given by the US Govt, it will allow the company to continue with operations and maintenance of the existing products but not the creation of new ones.
However, the ban was only lifted until August 1st and it is not clear what will happen after the deadline. But reports suggest that if ZTE can fully comply with the agreement it made with the US government by then, it could be a turn around point for them with the ban fully lifted.
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