ZTE can continue U.S. trade through end of August with latest extension

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Earlier this year ZTE found itself on the wrong side of the friend or foe line with regard to the U.S. government. After allegations surfaced that ZTE was channeling technology to Iran contrary to U.S. export-controls, the Commerce Department proposed what would have been some of the toughest trade sanctions ever levied by the U.S. against a company. Shortly after that, a reprieve was issued based on ZTE’s interest in cooperating with the government’s investigation. That reprieve was scheduled to end on June 30th, but a statement issued by the Commerce Department on Monday¬†indicates the government is extending relief through at least the end of August.

The restrictions that were originally proposed by the U.S. government would have prevented U.S. companies from selling any technology, software or equipment to ZTE. This would have a major impact on ZTE’s supply chain. ZTE chairman Zhao Xianming notes that the company wants to maintain “relationships with hundreds of American companies and our continued investment in the U.S.” Thus, there is significant incentive for ZTE to continue to cooperate with the U.S. government.

The original complaint regarding ZTE indicated the company had set up shell companies to funnel technology from the U.S. to Iran. Normally the technology could not be sold to Iran. If shell companies were used for this purpose, it would be to skirt around those trade restrictions. Although ZTE has largely been quiet on the matter, the Chinese government did use the original sanctions as a trigger point to complain about the U.S. trying to impose their trade philosophy on other countries.

source: Reuters
via: PocketNow


About the Author: Jeff Causey

Raised in North Carolina, Jeff Causey is a licensed CPA in North Carolina. Jeff's past Android devices include an HTC EVO, a Samsung Note II, and an LG G3, and a Motorola Moto X Pure Edition along with a Samsung Galaxy Tablet 10.1. He currently uses a Samsung Galaxy S8 and (very rarely) a Nexus 7 (2013). He is also using a Verizon-branded Motorola Moto Z Play Droid supplied by his job. Jeff used to have a pair of Google Glass and a Moto 360 Sport in his stable of gadgets. Unfortunately, his wife and kids have all drunk the Apple Kool-Aid and have i-devices. Life at home often includes demonstrations of the superiority of his Android based devices. In his free time, Jeff is active in his church, a local MINI Cooper car club, and his daughter's soccer club. Jeff is married, has three kids, and a golden retriever.