Companies
China hits back at US over ZTE
The headquarters of ZTE’s North America business in Dallas, Texas. Xinhua
Chinese officials on Tuesday hit back at the United States over its decision to impose restrictions on telecom equipment maker ZTE Corp for allegedly selling products to Iran in violation of sanctions.
Calling the restrictions “not a correct way” to handle economic disputes, Foreign Minister Wang Yi told reporters the approach “only hurts others without necessarily benefiting oneself”.
The US Commerce Department on Monday banned US suppliers from selling components to Guangdong-based ZTE. It claimed the company “illicitly exported” controlled items to Iran and its suppliers in the US will need to apply for a hard-to-get permit before selling products to ZTE again.
ZTE said the company is “fully committed” to compliance with the laws and regulations in the jurisdictions in which it operates.
“ZTE has been cooperating, will continue to cooperate and communicate with all US agencies as required. The company is working expeditiously toward a resolution of this issue,” it said in a statement.
ZTE, whose 2015 revenue exceeded 100 billion yuan ($15 billion), has suspended trading in its stocks on the Shenzhen and Hong Kong exchanges since Monday.
The Ministry of Commerce also criticized the US restrictions on the country’s second-largest telecom equipment maker. “The US move will severely impair the normal commercial activities of the Chinese firm. China will continue to engage with the US side on the issue,” the ministry said in a statement.
James Yan, research director at consultancy Counterpoint Technology Market Research, said the hardest-hit area will be chip supply.
ZTE relies heavily on San Diego, California-based semiconductor firm Qualcomm Inc for mobile chips. The company’s other major US suppliers include programmable logic devices makers Xilinx Inc and Altera Corp.
“I believe ZTE will team up with the Ministry of Commerce and its major partners…
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