The U.S. Supplier ban was lifted on ZTE Corp based in China (0763.HK). Investors cheered to this step on Monday. This step pushed up the shares by 17 percent. But analysts have also made a caution about the telecommunications equipment maker facing many obstacles on its journey of business revival.

A ban was lifted on the selling of parts to ZTE by American firms. This was done on Friday by the U.S. Commerce Department. This step is considered to be a long way back for this Chinese corp. This is because now ZTE can win the customer confidence that it had earlier lost. In addition to this, it can now also work harder to find alternatives to the suppliers of U.S. including Qualcomm, Avnet, Broadcom, etc. This is as told by Nikhil Batra, who is a senior research manager at consultancy IDC.

The Hong Kong-listed stock of ZTE opened up 5.5% on Monday showing a rise of 12& to HK$16.12 when it was officially noon.  That was 37% less than the last price it had during the month of April, which was the time when stock trading got a two month suspension after the ban.

ZTE is seen as a national threat and a certain group of Democratic and Republic U.S. senators urged the reinstating of the penalties of ZTE on Thursday. A showdown occurred between U.S. Senate and President Donald Trump over this particular issue in the previous month. The U.S. senate passed an annual defense bill that contained an amendment that can drive back the settlement of ZTE.

It remains unclear what course would this amendment take as the House and Senate are yet to do a reconciliation of their own versions.