U.S. to offer China’s ZTE 'temporary relief' on export curbs: official

Mon Mar 21, 2016 2:17am EDT
 
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By Steve Stecklow

(Reuters) - The U.S. government plans to temporarily lift export curbs it imposed on Chinese telecom equipment and smartphone maker ZTE Corp (0763.HK: Quote) for alleged Iran sanctions violations, a senior Department of Commerce official said.

The Commerce Department restrictions imposed earlier this month made it difficult for ZTE to acquire U.S. components by requiring its suppliers to apply for an export license before shipping any American-made equipment or parts to ZTE.

The department had said the license applications generally would be denied.

Shenzhen-based ZTE has been “in active, constructive discussions” with the Commerce Department for the past week, according to a senior official at the agency.

“As part of the effort to resolve the matter, and based upon binding commitments that ZTE has made to the U.S. government, Commerce expects this week to be able to provide temporary relief from some licensing requirements,” the official said.

"The relief would be temporary in nature and would be maintained only if ZTE is abiding by its commitments to the U.S. Government," the official added.

The details of the commitments are expected to be published this week in the U.S. Federal Register.

ZTE said on Monday it aims to ensure all of its operational activities adhere to international standards of its host countries and it will continue to communicate with relevant parties to resolve the issue as soon as possible.   Continued...

 
The company logo of ZTE is seen through a wooden fence on a glass door during the company's 15th anniversary celebration in Beijing April 18, 2013. REUTERS/Barry Huang