ZTE asks US to suspend sanctions

Chinese telecom company ZTE has asked the US Department of Economic Affairs to end sanctions it recently imposed on the company, which would prevent US companies from supplying ZTE.

Reuters reports that ZTE submitted a request on Sunday. An analyst told the news agency that the outcome of the current situation is likely to depend more on negotiations between the US and China. Talks between Chinese and US negotiators have taken place in the past week, according to Reuters, with Chinese representatives asking the US to review sanctions and hear ZTE’s appeal.

The US imposed sanctions in the middle of last month, barring US companies from supplying ZTE for a period of seven years. The Chinese company makes smartphones, among other things, for which it often uses socs from the American chip maker Qualcomm. Reuters writes in a separate statement that Taiwanese chip maker MediaTek has received government approval to supply ZTE.

Since the introduction of the US sanctions, Taiwan has required companies to have an export license if they want to supply ZTE, according to Reuters. ZTE said in a response to the US measures that they threaten the company’s survival. It also said that in imposing the sanctions, the US had disregarded measures taken by ZTE to address the country’s previous concerns. The US imposed the sanctions because ZTE supplied products to Iran despite a trade ban.

Before that, US intelligence agencies warned that using ZTE and Huawei equipment would pose security risks.

ZTE Axon M