America has counseled! The United States temporarily lifted trade sanctions against ZTE
America has counseled! The United States temporarily lifted trade sanctions against ZTE

The US Department of Commerce has announced that ZTE intends to bypass the US ban by establishing a shell company to export telecommunications equipment to the Middle East, so the US Department of Justice will restrict US companies (Qualcomm, Intel, etc.) from providing hardware and software support to ZTE. Many of ZTE's equipment (including smart phones) exported to the Middle East (Iran) use chips from Qualcomm and Intel. This violates the ban of the US Department of Commerce on the export of US enterprise technology products to Iran.

This restriction of the U.S. Department of Commerce will seriously affect ZTE's supply chain of communication devices (including smart phones), and a large number of Qualcomm chips (Snapdragon 615, Snapdragon 810, etc.) are used in ZTE's and Nubia's low - and high-end smart phones. Previously, ZTE shares had been suspended due to this impact.

Now we have good news. After ZTE accepted the investigation of the US Department of Commerce, the US Department of Commerce decided to temporarily lift the sanctions against ZTE to ease the Sino US relations. An official from the US Department of Commerce said that the US made the above decision because ZTE promised the US government that if ZTE complied with their guarantee (it would no longer sell telecommunications equipment to the Middle East), the US suspension of trade sanctions would continue. Of course, we all know that this matter is obviously not as simple as it seems. The existence of domestic anti sanctions strategies and the exchanges and negotiations between China and the United States behind it finally eased the situation.

At the press conference held by the Ministry of Commerce of China on March 17, the spokesman said that China had a clear attitude towards the trade restrictions of the United States: "We hope that the United States will proceed from the overall situation of developing Sino US economic and trade relations, properly handle this matter, and avoid affecting the stable and healthy development of Sino US economic and trade relations".


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Mo Changyou
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