Chinese telecommunications equipment giant ZTE reported Monday that it is facing U.S. government restrictions, after a media report that the company allegedly violated U.S. export controls to Iran.
In statements to the Hong Kong and Shenzhen stock exchanges, ZTE said trading had been halted over the "United States Commerce Department's proposal to implement export restrictions," but gave no further details. ZTE is China's second-biggest telecom equipment maker. News agency Reuters reported that the restrictions mean ZTE's suppliers must apply for an export license before shipping any U.S.-made equipment or parts to the Chinese company. The report, which quoted documents and a senior official at the U.S. Commerce Department, said the measures will take effect Tuesday.
Washington eased several restrictions on doing business with Iran in January, following an international agreement over the country's nuclear program. But sanctions tied to accusations of Tehran support for terrorism remain in effect, still largely blocking U.S. companies from business with Iran.
