Is US business with ZTE in crisis with Trump’s Commerce Department?
ZTE is on one long limb of a sanctions reprieve with the US Commerce Department after the Chinese manufacturer was accused of dealing with sanctioned entities in Iran.
Those actions from those claims stem from 2012 and the sanctions were first threatened in 2016. Since then, ZTE has been working with the government and has received relief from having the hammer drop on it — US companies would be banned from selling vital components to the company. Reuters reports that one-third of ZTE’s supply chain is dependent on US businesses.
The Shenzhen-based phonemaker has since warned investors to brace for the impacts of the sanctions as there’s a possibility that a Donald Trump administration — tough on trade issues especially with the Chinese — will let the latest reprieve expire on February 27.
There’s been hope that ZTE would be let off the hook for its extended cooperation. But who knows at this point?