Chinese smartphone manufacturer ZTE was recently banned from selling its products in the US for the next seven years by the US Department of Commerce for allegedly breaking a trade embargo against Iran and North Korea. As part of the ban, US companies were also prohibited from selling parts and software to ZTE during the time period. Just days after the sanctions were imposed, ZTE released a statement saying that it won’t accept the ‘unfair’ penalties and would seek legal action to get the decision overturned.
Now, according to a recent report from AFP, ZTE has submitted a request to the US Department of Commerce to issue a stay on the export ban and allow the company to resume operations in the country. A stay on the ban is not only crucial for ZTE’s survival but has also resulted in trade tensions between the US and China.
It’s worth noting that electronics major Huawei is also currently under investigation in the US and might face a similar ban. The Federal Bureau of Investigation (FBI) and the Office of Foreign Assets Control (OFAC) are conducting probes into whether the company was sending US technology to embargoed nations, including Syria, Iran and North Korea. Even though Huawei refutes all allegations, the company has picked up work on a new operating system in case it is prevented from using Android in its devices.