Chinese manufacturer ZTE has come under fire in recent weeks, with the U.S. imposing a seven-year export ban to the company as a result of a broken agreement. Sources are claiming that China itself is now appealing to Washington, hoping it will revise its decision and allow trade between U.S. companies and ZTE to resume.
U.S. officials imposed the ban last month when accusations arose surrounding ZTE supposedly shipping imported goods to Iran. The alleged actions would be in violation of U.S. sanctions, resulting in a debatably harsh punishment coming from Washington.
Despite tensions rising between the two nations, who are currently embroiled in a trade war, the U.S. emphasises that the ban was not implemented in relation to the broader trade spat. China perceives things differently, however, resulting in the discussion coming to light during general trade talks in Beijing last month.
Two sources, that wish to remain anonymous due to their lack of permission to speak about the topic, told Reuters that China has pleaded with the U.S. to take ZTE’s appeal into account, alongside its efforts with compliance.
Although nothing has been publicly said about the matter, the U.S. has stated that it attaches “importance to China’s representations and will report China’s stance to the U.S. president.”
As it stands, ZTE has emphasised how the ban threatens its survival by denying it access to Qualcomm chips and Dolby’s speakers. Furthermore, it reveals just how reliant China is on semiconductor imports as the wider trade war continues.
KitGuru Says: It looks as though China isn’t denying that ZTE deserves punishment, but is exercising concern over just how harsh the repercussions are. It will be interesting to see how the U.S. responds to the request, given that tactics have been seemingly ruthless so far.