U.S. Commerce Department to place restrictions on China’s ZTE

The United States Commerce Department is all set to keep the export limitations & restrictions on the Chinese telecom equipment producer ZTE Corp for alleged violations of the United States export controls on Iran according to the documents which were seen by the Reuters. The rules & regulations will make it difficult for company to acquire the United States products by needing the ZTE’s suppliers to apply for the exporting license before shipment of any kind of American made equipment or the parts to ZTE.

According to the Commerce Department notice which is going to be published next week in the United States Federal Register, the license apps will generally be denied. These restrictions will take effect from Tuesday, Reuters has learned & these rules are applicable to any company worldwide which needs to ship the American made products to the ZTE Corp in China. These companies are then not the target of the export curbs on the ZTE.

It is an essential new burden on the trade with ZTE as said by a senior official at the commerce department, told the Reuters. The official has declined to comment on if the U.S. government will take any further action against ZTE or not. The company is permitted to appeal against this action. ZTE which is based in the southern Chinese boomtown of Shenzhen has said in a statement on Sunday that it is aware of the media reports on United States export regulations.

ZTE is highly concerned about the recent media reports which are related to the U.S. department of commerce investigation. The company has said that ZTE has been working with the associated United States Govt. departments on the investigations since 2012 & maintain a constant communication with the associated departments & is committed to fully address & resolve any kind of concerns.

The trade in shares in ZTE, which also gives consumer electronic devices like smartphones in the United States were suspended on Monday in Hong Kong & Shenzhen. The company is not offering any kind of explanation.

It is an essential new burden on the trade with ZTE as said by a senior official at the commerce department, told the Reuters. The official has declined to comment on if the U.S. government will take any further action against ZTE or not.

The company is permitted to appeal against this action. ZTE which is based in the southern Chinese boom town of Shenzhen has said in a statement on Sunday that it is aware of the media reports on United States export regulations. ZTE is highly concerned about the recent media reports which are related to the U.S. department of commerce investigation. The company has said that ZTE has been working with the associated United States Govt.

departments on the investigations since 2012 & maintain a constant communication with the associated departments & is committed to fully address & resolve any kind of concerns. The trade in shares in ZTE, which also gives consumer electronic devices like smartphones in the United States were suspended on Monday in Hong Kong & Shenzhen. The company is not offering any kind of explanation.