June 19, 2018 / 7:36 PM / 4 months ago

ZTE and U.S. working on escrow agreement -U.S. official

June 19 (Reuters) - ZTE Corp and the U.S. government are still working on an escrow agreement that must be completed and funded with $400 million before a ban on the Chinese company can be lifted, a U.S. official told Reuters on Tuesday.

The Commerce Department official, who declined to be identified, emphasized that working out the escrow agreement was part of a “normal process.”

ZTE agreed to pay a $1 billion penalty and put the $400 million in an escrow account in a U.S. bank as part of a settlement agreement reached on June 7 to allow it to once again do business with U.S. suppliers.

The escrow account is designed to allow the United States to obtain the money in case ZTE violates the settlement. ZTE paid the $1 billion civil penalty last week, according to people familiar with the matter. (Reporting by Karen Freifeld; Editing by Meredith Mazzilli)

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