Under the new agreement, ZTE must also retain a compliance team selected by the Commerce Department for 10 years.
The administration has insisted that talks with ZTE deal are separate from larger trade dispute between the US and China, a position reiterated by Ross on Thursday.
The ban amounted to a death sentence for the company, which relies on us parts.
"Now, if they do violate it again, in addition to the billion dollars they're paying us right up front, we have them put $400 million in escrow so the total deal is a billion 400 million", Ross said. Ross had been instructed to look into easing restrictions on ZTE by President Trump, who had received a personal request from Chinese President Xi Jinping.
Senate Democratic leader Chuck Schumer called the agreement "a 180-degree turn away from the president's promise to be tough on China". But why is the USA government so concerned with what ZTE makes and sells?
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ZTE did not immediately respond to requests for comment on Thursday. ZTE reached an agreement to turn over $1.19 billion and punish executives involved in the scheme, but in April the US determined that the company hadn't lived up to its promises. "The Chinese public was up in arms because they believed the US was destroying ZTE".
Earlier, Wilbur Ross stated that the U.S. was looking at alternatives to the debilitating sanctions threatening the survival of ZTE. "China is willing to increase imports from the U.S.", Commerce Ministry spokesman Gao Feng told a weekly news conference.
Several U.S. chipmakers, including Qualcomm and Intel, count ZTE as a customer. Building and maintaining a 5G network in the US may create 3 million jobs and provide a $500 billion boost to GDP, according to a 2016 Accenture report.
Thursday's agreement was "a prerequisite for making broader progress", DeBusk said. "The ZTE case was a thorn in the side for China ..."
Acacia rose as much as 4.5% intraday, but ended the session down 1% to 33.53. NeoPhotonics (NPTN) rose 1.6% to 7.15, while Oclaro (OCLR) climbed 1.4% to 9.18.