Friday, April 1, 2016

ZTE to Make Changes to be Removed from US Trade Sanction List

ZTE has confirmed that it will fulfill any commitments necessary to be removed permanently from the U.S. Department of Commerce's list of sanctioned entities.  The company is expected to announced the resignation of certain senior managers in the coming days.

In March, the U.S. Department of Commerce added ZTE to the list of entities involved in "activities contrary to the national security or foreign policy interests of the United States." The Export Administration Regulations (EAR) listing, which limits the availability of most license exceptions on U.S. technology sales to ZTE, was driven by a finding that ZTE willingly resold restricted U.S. technology products to Iran during the period of economic sanctions. The listing could prevent U.S. semiconductor companies from doing business with ZTE.