The mainland ZTE was banned by the US Department of Commerce and is about to expire. The ban, after ZTE’s active communication with the U.S. official, is expected to have a chance to lift the ban in the near future, and may eventually end the ban by fine. However, ZTE also announced on the 14th that the communication between the two sides is still in progress. Before the results are released, there are still variables. It is obvious that ZTE is still very low-key, and it is not willing to take too early to ensure that it will pass.
The ban expires and returns to the United StatesThe announcement looks like the US has not yet fully agreed to lift the ban. However, it seems that there is no chance at all. Once the two sides negotiate successfully, ZTE has the opportunity to return to the US market after the anniversary of the ban. This is ZTE, which has recently suffered from layoffs. It is good news.
ZTE was banned by the United States, mainly due to a trading contract of the company. In March 2016, the US Department of Commerce accused ZTE of violating US export control policies against Iran and providing millions of dollars in computer software and hardware products to a telecommunications operator in Iran. ZTE's products include IBM, Microsoft, Cisco, Oracle and other US companies. But these US-owned companies said they did not know about the contract.
Products rely on US companies for procurementSubsequently, the US Department of Commerce ordered: restricting ZTE's suppliers in the United States to export products to ZTE. This export restriction applies to any company in the world that intends to ship products from the United States to ZTE (China). The US Department of Commerce’s ban on ZTE is huge, and many of ZTE’s products rely on sourcing from US companies. However, ZTE subsequently obtained a temporary license from the US Department of Commerce. After the temporary license expires, it needs to apply for approval again.
According to ZTE’s announcement on November 18 last year, the latest progress of the US Department of Commerce’s decision on export restrictions on the company said that the company was informed that the US Department of Commerce’s Bureau of Industry and Security (BIS) had made further rulings to extend the temporary general license. Until February 27, 2017 (US time).
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