ZTE gets 3-month reprieve from US ban on components
US will delay implementing ban on exporting parts and components to ZTE until November 28
ZTE Corp, which was slapped with a ban in March for breaching US trade sanctions on Iran, has been given another three-month reprieve on the restriction, allowing it to continue sourcing components and parts from US suppliers.
Exports restrictions on ZTE and its unit Kangxun Telecommunications Ltd will not take effect until November 28, ZTE said in a statement to the Hong Kong stock exchange, citing the US Department of Commerce.
“ZTE is fully committed to complying with the laws and regulations of the jurisdictions in which it operates,” ZTE said. “We look forward to maintaining our relationships with hundreds of American companies as well as continuing to invest in the U.S. and the global technology economy.”
It’s the third reprieve for ZTE, China’s largest publicly traded telecommunications equipment maker. The company was slapped with exports restrictions on March 7, barring US manufacturers from selling their parts and components to the company in southern China’s Shenzhen.
Shi Lirong, ZTE’s president since March 2010, was shifted to a non-executive director’s role in April following the imposition of the ban. ZTE also appointed a new chairman and president in a sweeping revamp of the senior management.
ZTE wasn’t alone in facing US reprimands. Huawei Technologies, China’s largest producer of telecommunications equipment, was subpoenaed by US regulators in June for its business deals with Iran and North Korea, both of which face US economic sanctions.
The US imposed restrictions on trade with Iran from 1979, following the seizure of the American embassy in Tehran. These sanctions are separate from international sanctions on Iran over its nuclear programme, which were lifted in January.
ZTE’s share price slipped 0.84 per cent to close at HK$11.76. The company’s shares have fallen 15 per cent since March. It will report interim earnings next Thursday.