ZTE appoints chief export compliance officer as US sanctions set to be enforced

Chinese telecoms equipment group hires former EY and KPMG consultant Matthew Bell into newly created position as latest extension to US trade ban deadline nears on Nov 28

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The Chinese telecoms equipment group is facing possible US sanctions that could come this month. It has appointed Matthew Bell into the newly created role of chief export compliance officer. Photo: Reuters

Published: 5:15pm, 15 Nov 2016Updated: 5:51pm, 15 Nov 2016

Faced with lingering uncertainty over US trade restrictions, ZTE Corp has appointed former EY and KPMG consultant Matthew Bell to the company’s newly created position of chief export compliance officer.

“His appointment reflects our commitment to further strengthening our international compliance programme in order to ensure it ... not only meets but exceeds the requirements under applicable laws and regulations in all global markets,” ZTE chairman and president Zhao Xianming said on Tuesday.

China’s largest listed telecommunications equipment manufacturer was slapped with export restrictions by the Bureau of Industry and Security of the US Department of Commerce in March for violating long-standing trade sanctions against Iran.

The restrictions require ZTE’s American suppliers of components and other products to apply for a licence to ship those items to the company.

ZTE chairman and president Zhao Xianming said Bell’s appointment to the new role reflects the firm's commitment to further strengthening its international compliance programme.

“A licence review policy of presumption of denial shall apply” in that situation, ZTE said.

On March 24, the bureau granted ZTE relief in the form of a temporary general license for a three-month period. This license has twice been extended, with the latest reprieve scheduled to end on November 28.