YOU ARE AT:5GZTE requests that US Department of Commerce suspend seven-year ban

ZTE requests that US Department of Commerce suspend seven-year ban

The U.S government has recently banned local companies to export components to ZTE

Chinese telecom equipment maker ZTE said it has filed a request to the U.S Department of Commerce’s Bureau of Industry and Security (BIS) for the suspension of a seven-year business ban.

In a filing to the Shenzhen stock exchange, ZTE also said that it had delivered additional evidence for the BIS investigation.

ZTE sent an internal memo to its employees stating that the firm has been “proactively communicating with relevant departments of the U.S government”, according to the South China Morning Post.  The vendor also said that it making efforts to resolve the matter “as soon as possible” and will continue to maintain close communication with relevant parties, the memo added.

Last month, the BIS banned American companies from selling telecommunications equipment and services 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. The Chinese vendor previously said that its business could be heavily impacted if the company fails to reach an agreement with the U.S government over the ban.

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. Some of the affected firms include Qualcomm, Dolby and Google.

Last week, Chinese officials holding trade talks with U.S negotiators in Beijing asked the United States to hear ZTE’s appeal and take into account the company’s efforts to improve its compliance process. U.S. officials have said the decision of the BIS to impose the ban against ZTE was not related to trade policy, according to Chinese press reports.

In a separate filing last week, ZTE said that it would not rule out taking legal actions against the export ban.

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. Trading will remain suspended pending the further release of an inside information announcement regarding, among other things, an assessment on the major impact of the denial order on the business and operations of the company, ZTE recently said in a statement.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.

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