U.S. places sanctions on ZTE, China reacts immediatelyStaff writer ▼ | March 7, 2016
The restrictions over allegations that ZTE violated U.S. export controls on Iran would take effect on Tuesday. They applied to any company globally that intended to ship US-made products to ZTE in China.
Trade dispute "We hope the U.S. stops this erroneous action"
Shares in ZTE were suspended in Hong Kong and Shenzhen on Monday. The company said in a statement that it was highly concerned at reports of the US plan.
The US Commerce Department began investigating ZTE in 2012, after Reuters reported the company had agreed to ship millions of dollars worth of hardware and software to Telecommunication Co of Iran (TCI).
It was understood the investigation would focus on whether ZTE acquired American products through front companies and shipped them to Iran, in violation of the sanctions.
ZTE maintained an active operation in the US, selling smartphones and other consumer products as well as supplying telecoms with broadband and mobile telephony equipment. ■