Commerce Department to accept evidence from ZTE in “informal procedures”
The Department of Commerce may take a second look at its decision to issue a Denial Order to ZTE, according to a senior agency official.
The official told The Wall Street Journal that the department has allowed ZTE to present additional evidence of its conduct in future meetings — the company does not have traditional rights of administrative appeal.
The Denial Order bans ZTE from sourcing products from the United States, which the Chinese telecommunications company says will “severely impact the survival and development of ZTE” and its partner companies. It was issued upon claims that the company made false statements in negotiating and reporting on the fulfillment of a settlement with the agency.
Beyond precluding the growth of its smartphone business in the United States in contrast to in China, where it has faced decline, the company also relies on US parts for its main operation supplying network infrastructure equipment to internet service providers.
It’s not clear at all if the department will consider and even reverse its order based on new evidence.