ZTE granted additional reprieve on US trade sanctions - Mobile World Live

ZTE granted additional reprieve on US trade sanctions

19 AUG 2016

The US Commerce Department issued a third extension of temporary relief to ZTE from export controls, giving it an additional three-month stay to 28 November.

The trade restrictions were first imposed in March following accusations the vendor had breached sanctions placed on exporting high-tech equipment to Iran.

The Chinese equipment and smartphone maker previously received temporary extensions in March and June that allowed the company to continue exporting products that contain US technology.

The first reprieve came after an agreement between the Commerce Department and ZTE, which would temporarily ease the sanctions if the executives involved in the alleged wrongdoing were removed. Just weeks after the agreement, ZTE replaced three of its most senior executives, including president and CEO Shi Lirong.

ZTE chairman and president Zhao Xianming said in a new statement the decision “reflects ZTE’s continued efforts to fulfill our commitment and improve our compliance programme so that it is best-in-class. It also recognises ZTE’s determination to cooperate with authorities, share information as requested and resolve the ongoing investigation.”

Zhao went on to say that the extension of interim relief will let ZTE continue serving customers, partners and suppliers in the US as “we address any remaining compliance issues with US authorities”.

The company noted it is making progress on improving its export compliance programme.


Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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