Mon, Mar 07, 2016 - Page 15 News List

US to place restrictions on China’s ZTE

FRONT COMPANIES:Washington is investigating Chinese telecoms equipment maker ZTE over alleged shipping of US-made tech products to Iran, in violation of sanctions

Reuters, LONDON

The document states that ZTE “has on-going projects in all five major embargoed countries — Iran, Sudan, North Korea, Syria and Cuba. All of these projects depend on US-procured items to some extent, so export control obstacles have arisen.”

The document goes on to cite “other risks” to ZTE, including its operations in the US.

“R&D employees at the US Research Centers often travel between China and the US, carrying R&D data,” it said. “This already severely violates the law.” The document does not specify what law might have been violated.

The company “needs to take preventative measures immediately, otherwise will face the risk of being investigated anytime,” the document said.

The document also says that ZTE's Iran project “can potentially put us at risk of being put on the blacklist by the US. If on the blacklist, our company may face the risk of losing the supply chain of US products.”

ZTE is one of the world's largest telecom equipment makers with operations in 160 countries. It also is a major manufacturer of mobile handsets. Founded in 1985, its shares trade on both the Hong Kong and Shenzhen Stock Exchanges.

Besides ZTE, the export curbs would apply to two of its Chinese affiliates, ZTE Kangxun Telecommunications Ltd (中興康訊電子) and Beijing 8-Star (北京八星) and an Iranian company, ZTE Parsian.

This story has been viewed 2154 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top