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US Lifts ZTE Export Ban – Report

US authorities are set to lift export restrictions they recently imposed on China's ZTE, which stood accused of violating sanctions on Iran, according to press reports. (See ZTE: What On Earth Were They Thinking? and ZTE Faces Trade Restrictions Over Iran Links.)

The US Commerce Department is said to have been in "constructive" negotiations with ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) over the past week about a temporary lifting of the ban, according to a report from Reuters.

"As part of the effort to resolve the matter, and based upon binding commitments that ZTE has made to the US government, Commerce expects this week to be able to provide temporary relief from some licensing requirements," said a Commerce Department official quoted in the Reuters story.

The export restrictions will have made it difficult for ZTE to obtain hardware and software developed by US companies, with ramifications for the Chinese vendor's supply chain.

ZTE sources components from a number of US technology players, including Intel Corp. (Nasdaq: INTC), IBM Corp. (NYSE: IBM) and Microsoft Corp. (Nasdaq: MSFT).

Earlier press reports claimed the Chinese manufacturer had signed contracts worth millions of dollars to supply Iran's biggest phone company with gear featuring US-made components.

According to Reuters, the Commerce Department has said the "relief" will only be maintained if ZTE abides by commitments it has made to the US government.

Details of those commitments are due to be published this week in the US Federal Register, according to the report.


For all the latest news from the wireless networking and services sector, check out our dedicated mobile content channel here on Light Reading.


Following the imposition of the ban earlier this month, ZTE said it was committed to complying with the laws and regulations of the jurisdictions in which it operates and that it has been cooperating with US agencies as required.

But the company's shares have not traded in Hong Kong since news of the ban first broke and ZTE has also delayed the release of its latest annual results until it deems the matter to have been resolved.

ZTE is not the only Chinese company that has come under fire from US authorities.

US service providers have been dissuaded from using equipment made by ZTE as well as larger rival Huawei Technologies Co. Ltd. amid government concerns about the companies' close links with the Chinese state.

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

ITProjec39942 10/10/2016 | 1:08:39 AM
some licensing requirements "As part of the effort to resolve the matter, and based upon binding commitments that ZTE has made to the US government, Commerce expects this week to be able to provide temporary relief from some licensing requirements," said a Commerce Department official quoted in the Reuters story.

The export restrictions will have made it difficult for ZTE to obtain hardware and software developed by US companies, with ramifications for the Chinese vendor's supply chain.

ZTE sources components from a number of US technology players, including Intel Corp. (Nasdaq: INTC), IBM Corp. (NYSE: IBM) and Microsoft Corp. (Nasdaq: MSFT).
I disagree with your entire premise. Verizon is paying its bandung content providers to provide content jogja on its FiOS TV network. I am assuming SBC will pay its content providers to provide video over Lightspeed.

Google is not a content provider, but semarang more of a content aggregator. A way of finding actual content. The Google Business bekasi model is to be paid by content providers to be found through Google.

Example, you can "google" Light Reading bogor and find this site. But Light Reading is the content and not Google.

From that cikarang standpoint, the RBOC argument over QoS and making people pay for access to their customers is really a way to charge cirebon their customers more money. As at the jakarta end of the day businesses would pay Google more for karawang ads and in turn charge their customers more. If a click-fraud application comes around in that time, then Google will surabaya be out of the pay-per-click business.

ISPs are also not content providers but common carriers.

 
mendyk 3/21/2016 | 1:32:59 PM
Collateral damage There are a number of US-based suppliers that would be damaged by the export ban. Do you think the advocates of punitive tariffs and other trade-war tactics are paying attention?
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