The US Department of Commerce will remove Chinese telecommunications equipment maker ZTE Corp from a trade blacklist on Wednesday after the company pleaded guilty to violating sanctions on Iran and agreed to pay nearly 900 million US dollars, the agency said in a notice.
Removal from the list marks the end of a tense period for ZTE, which faced trade restrictions that could have severed its ties to critical US suppliers.
"By acknowledging the mistakes we made, taking responsibility for them, and remaining focused on enacting positive change in our company, we are committed to a ZTE that is fully compliant, healthy and trustworthy," said ZTE Chief Executive Zhao Xianming in an emailed statement.
CFP Photo
Last year, the US Commerce Department placed export restrictions on ZTE as punishment for violating US sanctions against Iran. The restrictions would have prevented restricted suppliers from providing ZTE any US-made equipment, potentially freezing the Chinese handset maker's supply chain.
Over the past 12 months, as ZTE cooperated with US authorities, the US Commerce Department temporarily suspended the trade restrictions with a series of three-month reprieves, allowing the company to maintain ties to US suppliers.
Earlier this month, ZTE agreed to pay a total of 892.4 million dollars and pleaded guilty to violating US sanctions by sending American-made technology to Iran.
The Commerce Department said on Tuesday it would impose severe restrictions on former ZTE CEO Shi Lirong, whom the agency accused of approving efforts to skirt sanctions and ship equipment to Iran.
As part of the deal, ZTE will be under probation for three years and agreed to cooperate in the continuing investigation.
Zhao also said in his statement, “With this settlement behind us – and coupled with recent efforts to streamline operations and grow ZTE’s innovative leadership around 5G – we anticipate continued growth and business expansion over the next several years as we continue to work with our partners in the US and around the world.”
(Source: Reuters)
