ZTE Submits Application To The U.S. Authorities For Removal Of Ban
According to recent reports it has been confirmed that on Sunday, ZTE Corporation submitted a request to the United States Commerce Department for suspension of business ban. The application was submitted to the Bureau of Industry and Security at the Commerce Department.
Earlier this year, the BIS had imposed a complete ban of 7 years on ZTE after it was caught shipping goods to Iran secretly. As part of the ban, No American Company can sell software or equipment to ZTE. ZTE has previously said that this ban will not only hurt the company but will also prove negative for the American companies. A lot of American companies provide equipment to ZTE. The Chinese company is deeply dependent on imports of U.S. chips for its business. Nearly 70 percent of the smartphones that ZTE manufactures contain American Chips. ZTE’s company spokesman has said that the ban is unfair and will jeopardize the future of ZTE.
U.S. and Chinese negotiators held
Last week, U.S. and Chinese negotiators held trade talks in Beijing. The Chinese officials asked the U.S. to listen to ZTE’s plea and give the company a chance to prove itself. Industry analysts believe that the Trump Administration imposed a ban on ZTE as part of the trade war between the two countries. ZTE has gained support of a lot of people in China and people are supporting this company on social media. Tam Tsz-Wang, an analyst who works at DBS Vickers said that ZTE’s application seemed to be bureaucratic.
While speaking to Return he said that the application ZTE made might not be entertained by the U.S. officials until China and U.S. mend their economic ties. Moreover, the ban on ZTE highlights the fact that big companies in China are heavily reliant on American Companies for imports.
Yin Yimin, the chairman of ZTE has said that the company is trying its best to solve this issue. He also said that ZTE is working with the Chinese government actively. Yimin said that he was optimistic about the situation and said that the issue will eventually come to an end.