ZTE faces export sanctions from US Department of Commerce

March 7, 2016
Chinese communications systems vendor ZTE, which was declared a threat to U.S. security by Congress in 2012 (see "U.S. House Intelligence Committee sees Huawei and ZTE as security threats"), is in hot water with the U.S. government again. Multiple press reports suggest that the U.S. Department of Commerce will soon announce export restrictions that will limit if not eliminate access to U.S. technology that ZTE uses in its communications equipment. The restrictions are the result of assertions that ZTE has sold communications equipment to Iran that contain U.S.-sourced technology banned from export to the Middle Eastern country.

Chinese communications systems vendor ZTE, which was declared a threat to U.S. security by Congress in 2012 (see "U.S. House Intelligence Committee sees Huawei and ZTE as security threats"), is in hot water with the U.S. government again. Multiple press reports suggest that the U.S. Department of Commerce will soon announce export restrictions that will limit if not eliminate access to U.S. technology that ZTE uses in its communications equipment. The restrictions are the result of assertions that ZTE has sold communications equipment to Iran that contain U.S.-sourced technology banned from export to the Middle Eastern country.

The restrictions would require those interested in supplying U.S. technology to ZTE Corp., Chinese affiliates ZTE Kangxun Telecommunications Ltd and Beijing 8-Star, and ZTE Parsian of Iran, to apply to the Department for permission, according to Reuters. It is unlikely such permission would be granted.

The sanctions would be set in place tomorrow, according to the reports. ZTE can appeal the decision.

IBM, MicroSoft, and Qualcomm are among the U.S.-based companies that are or have supplied technology to ZTE.

Reuters reported in 2012 that ZTE had signed contracts to sell equipment into Iran made with U.S. technology banned from export into the country, which is the target of U.S. economic sanctions. On Sunday, Reuters reporters said they had seen documents in Commerce Dept. possession that ZTE was aware that the equipment contained U.S. technology and therefore was in violation of the U.S. sanctions. The documents suggest ZTE had considered setting up shell companies to avoid getting caught.

In response to a question on the matter asked this morning during his regular media session, China Foreign Ministry spokesman Hong Lei said, “The Chinese side is firmly opposed to the US using domestic laws to place sanctions on Chinese companies. The Chinese side urges the US side to call off the wrong action lest it should jeopardize economic cooperation and relationship between China and the US.”

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.

About the Author

Stephen Hardy | Editorial Director and Associate Publisher

Stephen Hardy has covered fiber optics for more than 15 years, and communications and technology for more than 30 years. He is responsible for establishing and executing Lightwave's editorial strategy across its digital magazine, website, newsletters, research and other information products. He has won multiple awards for his writing.

Contact Stephen to discuss:

  • Contributing editorial material to the Web site or digital magazine
  • The direction of a digital magazine issue, staff-written article, or event
  • Lightwave editorial attendance at industry events
  • Arranging a visit to Lightwave's offices
  • Coverage of announcements
  • General questions of an editorial nature

Sponsored Recommendations

March 12, 2025
Join us for an engaging discussion with industry experts on the intersection of AI and optics. Moderated by Sean Buckley, editor-in-chief of Lightwave+BTR, this panel will explore...
March 25, 2025
Explore how government initiatives and industry innovations are transforming rural broadband deployments, overcoming cost and logistical challenges to connect underserved areas...
April 9, 2025
As transceiver speeds increase, so do thermal challenges. Discover key insights into innovative cooling solutions that ensure optimal performance and reliability.
March 7, 2025
In today’s hyperconnected world, rolling out and managing profitable, high-performance networks for access and transport will require innovative architectural approaches. The ...