Chinese telecom equipment maker ZTE Corp. will get temporary relief from the United States in relation to export curbs imposed for alleged Iran sanctions violations, according to Reuters.
The Department of Commerce is expected this week to lift export curbs on the Shenzhen-based firm, the report said, citing an unidentified official at the US government agency.
“The relief would be temporary in nature and would be maintained only if ZTE is abiding by its commitments to the US government,” the source was quoted as saying.
The Commerce Department restrictions imposed earlier this month made it difficult for ZTE to acquire US 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.
ZTE has been “in active, constructive discussions” with the Commerce Department for the past week, according to the Reuters source.
“As part of the effort to resolve the matter, and based upon binding commitments that ZTE has made to the US government, Commerce Department expects this week to be able to provide temporary relief from some licensing requirements,” the source said.
ZTE is among the largest companies that the Commerce Department has hit with a near-total export ban.
The Chinese firm is the No. 4 smartphone vendor in the US, with a 7 percent market share, behind Apple Inc., Samsung Electronics and LG Electronics, according to research firm IDC.
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.
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