U.S.-China Trade Relations Sees Another Bump Over Tech Firm ZTE
China's government says it is ready to protect its "legitimate rights" after US authorities penalized a Chinese telecoms equipment maker over exports to Iran, North Korea.
Beijing: China's government says it is ready to protect its "legitimate rights" after U.S. authorities penalized a Chinese telecoms equipment maker over a case involving exports to Iran and North Korea.
The Chinese Commerce Ministry said today it hoped Washington would treat ZTE Corp. fairly after U.S. authorities concluded it paid bonuses to employees involved in a scheme to ship equipment to North Korea and Iran instead of disciplining them as it promised in 2017.
The U.S. Commerce Department yesterday barred ZTE, one of China's most prominent technology companies, for seven years from importing American components. The Commerce Ministry said Beijing will "stand ready to take necessary measures to safeguard the legitimate rights and interests of Chinese companies."
ZTE, headquartered in the southern city of Shenzhen, pleaded guilty in March 2017 and agreed to pay a $1.19 billion penalty for shipping the telecoms equipment to North Korea and Iran in violation of U.S. regulations. ZTE Corporation is a leading global provider of telecommunications equipment and network solutions. Through its network of operators across 140 countries, the company delivers innovative products and business solutions.
“We hope the United States will properly handle the matter in accordance with regulations and create a fair, equitable and stable legal and policy environment for the company,” a Commerce Ministry statement said.
“The Ministry of Commerce will pay close attention to the progress of the situation and stands ready to take necessary measures to safeguard the legitimate rights and interests of Chinese companies.”
ZTE said in a statement it was “evaluating the possible impact” on the company.
The tussle over ZTE comes weeks after U.S. and China announced their decision to slap tariffs on each other's products totaling over $100 billion.
(With Agency inputs)
(The above story first appeared on LatestLY on Apr 17, 2018 07:40 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).