U.S. will remove ZTE from trade blacklist
Global Times-Global Internet Reporter Zhao Jue-eung The U.S. Department of Commerce said on the 29th that China's telecommunications equipment manufacturer ZTE will be removed from the trade blacklist (entity list) on that day. ZTE Corporation also issued an announcement on the morning of the 29th. After the recommendation of the US Department of Commerce’s Bureau of Industry and Security, the company and Shenzhen Zhongxing Kangxun Electronics Co., Ltd. will be removed from the list of entities on the 29th, US time. Earlier this month, ZTE and the U.S. government reached a settlement on the export control investigation case and agreed to pay approximately US$890 million in criminal and civil penalties.
Reuters said that the removal from the black list means that ZTE’s previously tight period of limited trade with the United States is about to end.
In March 2016, the U.S. Department of Commerce announced that on the ground of violating U.S. export control regulations, ZTE and other Chinese companies were included in the trade blacklist, and ZTE adopted export restrictions. However, the U.S. Department of Commerce issued a temporary license to ZTE. As long as the company cooperates with the investigation, it can continue to do business with U.S. companies. The duration of the temporary license has been extended several times. The latest deadline is on the 29th of this month.
On the 7th of this month, ZTE announced that it has violated US export control laws and regulations and is willing to assume corresponding responsibilities and pay a fine of 890 million U.S. dollars. In addition, the U.S. Department of Commerce’s 300 million U.S. dollar fine for ZTE can be suspended, depending on the supervision and audit results of ZTE's implementation of the agreement in the next seven years.
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