Business
U.S. gave China's ZTE temporary trade sanction relief, until June 30.
Reuters writes:
The U.S. government will give Chinese telecom equipment and smartphone maker ZTE Corp (000063.SZ) a brief three-month reprieve on tough export restrictions it imposed earlier this month, the Commerce Department said on Tuesday. The department on March 8 imposed some of the toughest-ever U.S. export restrictions on ZTE for allegedly breaking U.S. sanctions against Iran. The agency said it would ease the restrictions until June 30th. Experts had said the restrictions would have caused disruption across ZTE's sprawling global supply chain. The restrictions would have banned U.S. companies from exporting to ZTE any technology, software or equipment such as chips and processors made in the United States. The decision would also have prevented software makers from selling typical office applications like Microsoft Windows - or even providing updates. The easing, which will suspend the restrictions as of Thursday, could be extended provided that ZTE cooperates with the "U.S. Government in resolving the matter," the Commerce Department said. An agency spokesman declined to comment further. A ZTE representative could not immediately be reached for comment.
The Wall Street Journal reports:
The U.S. slapped trade sanctions on the telecommunications supplier earlier this month, citing evidence ZTE violated restrictions on exporting American technological goods to Iran and other nations.Earlier in March, the Commerce Department said ZTE acted “contrary to the national security and foreign policy interests of the United States.” Authorities alleged that they had uncovered plans by ZTE to use a series of shell companies “to illicitly re-export controlled items to Iran in violation of U.S. export control laws.” The resulting trade sanctions put ZTE on a blacklist that bars U.S. companies from supplying Iran with an array of restricted goods, including computers, software and telecommunications equipment. The decision hinders the company’s ability to buy U.S. components and software, which has prompted protests from the Chinese government. Beijing has lobbied to have ZTE removed from the list.
Tuesday’s ZTE statement did not give the terms of the licence or say what requirements were met to obtain it. "ZTE is fully committed to complying with the laws and regulations in the jurisdictions in which it operates, and will be continuing to make further contributions to (the) global telecoms industry," it said. The case dates back to 2012 when the US Department of Commerce first began investigating the transfer of US technology to Iran, according to media reports. Washington in January eased several restrictions on doing business with Iran following an international agreement over its nuclear programme. But sanctions linked to accusations that Tehran supports terrorism remain in force, still largely blocking US companies from business with Iran. ZTE is China’s second-biggest telecoms equipment maker with customers in more than 160 countries.
