News
Chinese vendor accused of violating controls on Iran trade; decision angers China.
China reacted angrily on Monday to news that the U.S. plans to place export restrictions on Chinese kit maker ZTE.
Documents cited in a Reuters report allege that ZTE has violated export controls regarding Iran. According to the newswire, the U.S. Commerce Department will require ZTE’s suppliers, which include the likes of Qualcomm, IBM and Microsoft, to apply for a licence before they can ship products to it.
The restrictions are due to come into force on Tuesday and will make it harder for any company, not just those based in the U.S., to supply American-made products to ZTE.
ZTE "is committed to fully address and resolve any concerns," the company said, in the report.
"China is opposed to the U.S. citing domestic laws to place sanctions on Chinese enterprises," said the Chinese Foreign Ministry, in a separate Reuters report also on Monday. "We hope the U.S. stops this erroneous action and avoid [sic] damaging Sino-China trade cooperation and bilateral relations."
The U.S. has a longstanding ban on the sale of homegrown technology products to Iran. According to Reuters, an investigation by the Commerce Department alleged that ZTE violated the ban by importing U.S.-made products through front companies and shipping them to Iran.
