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US continues easing restrictions on ZTE as previous trade concerns wane

Although ZTE appeared to be in hot water with the US government earlier this year, authorities are continuing to give the company extensions.

Published onAugust 19, 2016

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Earlier this year, ZTE got hammered with a number of trade sanctions after the US Commerce Department suspected the Chinese tech company of handing over American technology to countries like Iran. Needless to say, this put ZTE in something of a tight position.

However, now the US government appears to be finding nothing particularly troubling as the investigation into ZTE. The sanctions came down in March, but just two weeks after they were issued, authorities gave the company a temporary reprieve that would allow them to continue doing business through June while their investigation into the matter continued.

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As the June deadline approached, and the investigation into suspicions about ZTE’s trade operations failed to unveil anything deeply troubling, the Department of Commerce extended the sanction until the end of August. Now with that deadline creeping up on us, the Department has elected to give ZTE yet another green light through November.

ZTE has been working closely with the US government and hopes to be emerge from this debacle with their reputation intact.

What do you think of ZTE and the Commerce Department’s accusations of illicit trade? Does the company need to be restricted, or are these continued extensions evidence that research into their alleged violations are coming up empty handed? Let us know your thoughts in the comments below!

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