The US government and ZTE have signed an agreement that brings the troubled Chinese telecommunications company close to a return to normal operations nearly three months after it was hit by a ban on using American suppliers, reports the Financial Times.
The only remaining task for ZTE is to pay a deposit of $400 million in escrow to the US Commerce Department, redeemable should the company avoid violating the terms of a deal reached last month.
Once the ban is removed, ZTE is expected to restart the company’s core business, which it ceased shortly after the introduction of the ban, allowing its 80,000 employees to resume normal life.
Shares in the company rose 23.9% in Hong Kong and hit the daily 10% maximum increase on the Shenzhen exchange in the wake of the news. However, the share price remains down 54% and 63% respectively for the year so far.