The United States won’t allow ZTE to buy products from its companies for the next 7 years. Now, Taiwan is turning insular from the mainland telecoms giant.
Nikkei Asian Review reports that Taiwanese suppliers are being ordered by the government to suspend shipments to the company and to seek an export permit before moving forward.
“What we do was for the companies’ own good, to ensure they are doing legal business with [ZTE],” said David Hsu, deputy director-general for the Bureau of Foreign Trade. “There is no reason for the government to reject their permit if their business activities are legal.”
The action was taken on April 23. Permits will be approved within five business days for materials outside of nuclear, biochemical or military use. Review periods for more suspicious items may take up to 15 business days.
Semiconductors firm MediaTek, which ships chipsets to ZTE and other Chinese phone makers, had tipped investors and the media to the order in its earnings call.
ZTE is under a exports moratorium from the US government after the Commerce Department accused it of violating terms of its settlement regarding sanction violations dating to 2012.