Published: Sat, April 21, 2018
Economy | By Shawn Conner

ZTE slams United States ban on sales as unfair, vows to safeguard interests

ZTE slams United States ban on sales as unfair, vows to safeguard interests

The chairman of Chinese telecom-equipment maker ZTE says the firm will take all legal measures to counter a U.S. ban on the sale of parts to the company.

It was also likely prompted by the U.S. Department of Commerce's recently announced policy banning American companies from doing business with ZTE, a Chinese tech giant, for the next seven years.

"The ban will not only severely impact the survival and development of ZTE, but also cause damage to all partners of ZTE including a large number of U.S. companies", said the statement, which came after the U.S. Department of Commerce imposed a denial of export privileges against ZTE for alleged violations of the Export Administration Regulations earlier this week.

Telecom equipment-maker ZTE Corp. on Friday called US sanctions against it "unacceptable" and potentially life-threatening, but said it will still try to resolve the matter through talks with Washington.

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In turn, the Shenzen-based communications-equipment maker vowed to protect its rights by legal means without specifying what actions it may take. However, the U.S.in 2016 said that while the investigation was going on, ZTE had made false statements in regards to disciplining employees who had been involved.

"The most urgent priority is to ease the disastrous impact on ZTE caused by USA sanctions through efforts from multiple sides", the CCPIT said, noting that it would be "unrealistic" to ask the Unites States to remove the order. News Monday that it was being hit with a seven-year export ban sent the company scrambling.

The U.S. took direct aim at ZTE for breaking a plea bargain.

"We can see compliance risk has become a core risk for Chinese firms that join global competition", the trade body said in the proposal dated April 18.

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ZTE and Huawei have been shut out of the US market for network switching gear since a congressional panel in 2012 labeled them security threats.

ZTE smartphones aren't the most popular, but can be intriguing. Their phones offer superior value for money.

ZTE Corp has vowed to take all available legal means to challenge the seven-year import ban imposed by the USA government, criticising the decision as "extremely unfair". They're also one of the only Chinese brands to supply a carrier in the Japanese market, offering rare competition to Apple, Samsung, and Sony. The company employees 30,000 people in research roles. So in return, China is finding fault with Qualcomm's planned takeover of NXP Semiconductors to hurt America, as well as doubling down on developing its own high-end chips to decrease reliance on the US. And that gets passed on to consumers. The ministry added that ZTE has worked with many United States firms, having contributed to job creation in the US.

Hua said the US was being inconsistent.

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Aside from illicit distribution of American resources, the U.S.is also accusing ZTE of lying to officials, "and obstructing justice including through preventing disclosure to and affirmatively misleading the U.S. Government".

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