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ZTE Might Face Restrictions In The USA

The Business of Telecommunications

ZTE Might Face Restrictions In The USA

Chinese equipment vendor, ZTE might face export restrictions by US Commerce Department for allegedly violating US export controls on Iran as part of an investigation dating back to 2012, says Reuters.


If implemented the restriction will involve ZTE to apply for an export license before shipping any US-made equipment or parts to ZTE. This is likely to be implemented on Tuesday. ZTE can however appeal the decision.

“ZTE will continue with normal operations while conducting comprehensive assessments and will be actively communicating with stakeholders. As a responsible business, ZTE strives to ensure all operational activities adhere to international trade practices and the laws and regulations of host countries,” the Chinese company said in a statement. It also said that ZTE is committed to resolving the issue at the earliest.

Reuters reports that the US commerce Department investigated that ZTE signed contracts to ship hardware and software from US tech firms to Telecommunication Co of Iran, largest telecom service provider of Iran. Dell, Oracle, Microsoft and IBM were some of the companies involved and have said that they were not aware of the Iranian contracts.



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