ZTE Facing a US Export Ban for Selling to Iran
Published on: 7th Mar 2016
Note -- this news article is more than a year old.
The USA is reportedly set to impose export restrictions on US firms supplying components to China's ZTE, following allegations that ZTE broke sanctions on Iran.
The restrictions, if applied, would require any US supplier to seek a specific export license for each product they sell to ZTE. While that is an inconvenience, the Reuters news agency reported that such applications will generally be refused.
Effectively blocking ZTE from buying US supplied components for its hardware.
"This is a significant new burden on trade with ZTE," a senior official at the commerce department told Reuters.
The move follows an investigation dating back to 2012 which claimed that ZTE had shipped goods to Iran, which at the time was under UN sanctions. Although ZTE could have sold goods to Iran, that the products contained US supplied components put them in breach of the tougher US sanctions against Iran.
The USA's Commerce department is reported to have found documents showing that ZTE managers knew that they were engaging in a deliberate sanctions-busting scheme in order to win the Iranian contracts.
ZTE later restricted its business operations in Iran.