China Approaches U.S. To Relax ZTE Ban

The United States Department of Commerce recently banned China-based smartphone manufacturer ZTE from sourcing components from U.S.-based suppliers. This means that the company can no longer buy processors from Qualcomm and might even end up losing its Android license. The ban was placed in response to the company’s failure to completely meet the terms of the settlement in a sanctions violation case that ZTE lost back in 2016. A new report claims that Chinese officials have approached their U.S. counterparts in a bid to get the ban relaxed.

Citing two sources with knowledge of the matter, Reuters reports that China has asked the United States to amend the seven-year ban that prevents U.S. companies from doing business with ZTE.

The ban has been viewed by many in China as part of the larger trade tussle that’s taking place between two of the world’s strongest economies. The appeal is said to have been made during trade talks between the two countries earlier this week in Beijing. Senior officials from both sides were present in this meeting.

The report adds that Chinese negotiators have asked their U.S. counterparts to listen to ZTE’s appeal and consider the company’s efforts to improve its compliance. They request that the ban should be amended. U.S. officials have reportedly said that the “attach importance to China’s representations and will report China’s stance to the U.S. president.”

Adnan Farooqui
Categories: General
Tags: ZTE