The U.S. Commerce Department Asked To Terminate Business Ban By ZTE

The U.S. Commerce Department Asked To Terminate Business Ban By ZTE

China’s ZTE Corp has given an application to the U.S. Commerce Department’s BIS for the deferment of a business prohibition, it mentioned in a filing to the stock exchange of Shenzhen.

Washington forced a 7-year ban on U.S. companies selling components and software to ZTE in the previous month after knowing that Chinese telecom company breached the U.S. sanctions over Iran.

ZTE’s exchange filing on Sunday didn’t provide details of its request or affirmed when it had been completed, but it did say that the company had presented supplementary material at the BIS’ request.

The Chinese firm is greatly dependent on U.S. chips imports and the ban on sales hampers the smartphone business. ZTE said the ban is improper and can threaten its survival.

Last week, Chinese mediator while addressing related trade talks with the U.S. correspondents in Beijing asked the US to heed ZTE’s plea, and take into consideration the company’s attempts to modify the ban and advance its compliance.

U.S. officials have stated that the action against ZTE was not correlated to trade policy, but the move has been seen by many in China as a part of the broader trade fight between the world’s two largest economies.

Tam Tsz-Wang, an analyst at DBS Vickers said, “ZTE demand appeared to be procedural.”

“This does not make me revolve all optimistic,” Tam told Reuters. “The conclusion is more a concern that relies on the negotiation amid China and the U.S.,” he added.

The ban on sales to ZTE has also highlighted China’s heavy dependence on semiconductor imports between growing trade stress with the US.

Yin Yimin, ZTE’s Chairman, mentioned in a letter dated May 4 that the company was proactively taking actions through the supervision of the Chinese Government, approaching for a resolution hastily.”

“However, no matter how long is the road, it has an end. Let’s be hopeful, confident, and greet the glow of dawn,” Yin added.

Morgan Jones

Morgan has been in the position of the business analyst for almost a decade and with such expertise, he is one of the best expert hands with us. His profound understanding of the trade, commerce, and business trends makes him a reliable contributor to blamfluie.com.

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