The U.S. Department of Commerce is expected this week to lift export curbs it imposed on Chinese telecom equipment and smartphone maker ZTE Corp for alleged Iran sanctions violations, Reuters reported.
"The relief would be temporary in nature and would be maintained only if ZTE is abiding by its commitments to the U.S. Government," according to a senior official at the agency.
The Commerce Department restrictions imposed earlier this month made it difficult for ZTE to acquire U.S. components by requiring its suppliers to apply for an export license before shipping any American-made equipment or parts to ZTE.
The department had said the license applications generally would be denied.
Shenzhen-based ZTE has been “in active, constructive discussions” with the Commerce Department for the past week, according to a senior official at the agency.
“As part of the effort to resolve the matter, and based upon binding commitments that ZTE has made to the U.S. government, Commerce expects this week to be able to provide temporary relief from some licensing requirements,” Reuters quoted the official as saying.
The details of the commitments are expected to be published this week in the U.S. Federal Register.
ZTE is among the largest companies that the Commerce Department has hit with a near-total export ban, according to public records. It is the No. 4 smartphone vendor in the United States, with a 7 percent market share, behind Apple Inc, Samsung Electronics Co and LG Electronics Inc, according to research firm IDC. It sells handset devices to three of the four largest U.S. mobile carriers: AT&T, T-Mobile US and Sprint Corp.
The export restrictions have drawn protests from the Chinese government and rocked ZTE’s business. Since coming under fire in 2012 for alleged deals with sanctions-hit Iran and possible links to the Chinese government and military, ZTE has ramped up its spending on Washington lobbyists.
It spent $5.1 million in the last four years, up from $212,000 in 2011, as it sought to assuage national security concerns, according to publicly available lobbying records maintained by Congress.
