Report: Commerce says new evidence to be presented by ZTE would be analyzed through an informal procedure
The U.S Department of Commerce will allow ZTE to present additional evidence after the agency recently issued an order banning American firms from selling components and software to the Chinese technology firm, the Wall Street Journal reported.
According to the report, the Department of Commerce has agreed to receive new evidence from ZTE through an informal procedure. Under the agency’s regulations, ZTE would not be able to make a formal appeal regarding the ban.
Last week, the Department of Commerce’s Bureau of Industry and Security (BIS) banned American companies from selling telecommunications equipment to ZTE after the firm allegedly did not live up to the terms of an agreement that had been worked out after it illegally shipped telecom equipment to Iran and North Korea.
The government’s order, which went into effect immediately, bans American firms from exporting components directly to ZTE or through a third country until March 13, 2025.
On April 20, ZTE said that the U.S ban was unfair and threatens its survival. The vendor also said that this decision would affect the interests of a number of U.S firms.
In a recent statement to the Hong Kong stock exchange, ZTE said that it was “making active communications with relevant parties and seeking a solution” to the U.S export denial order.
On April 17, the Chinese company was forced to halt trading of its shares in Hong Kong and Shenzhen following the decision by the U.S authorities.
In a letter to ZTE’s employees, the company’s chairman Yin Yimin said that ZTE ” is following closely with this issue and will uphold openness, transparency and integrity to continue to communicate, and at the same time, will solve it with legitimate means, seeking to reduce the adverse impact resulted from this issue.”
The ban will also impact the business of a number of U.S firms including Qualcomm, Dolby and Acacia Communications.
Acacia Communications, a provider of high-speed coherent optical interconnect products, said in a statement that the company is taking steps to suspend affected transactions as a result of the ban and is assessing the impact of these developments on Acacia.
Sales to ZTE had accounted for 30% of Acacia’s overall revenues in 2017 and 32% in 2016.
