U.S. Extends Reprieve For China's ZTE In Iran Sanctions Case

ZTE Corporation is a Chinese multinational telecommunications equipment company headquartered in Shenzhen, China.

The U.S. government has extended through August 30 a reprieve for ZTE Corporation from tough export restrictions imposed for allegedly violating sanctions against Iran.

The Commerce Department on June 27 said the reprieve will allow the Chinese smartphone maker to continue exporting equipment containing U.S. technology.

The agency said in March that its first reprieve could be extended if the company cooperated with the government.

“This extension of relief...recognizes ZTE’s determination to cooperate with authorities, resolve the continuing investigation,” ZTE President Zhao Xianming said.

ZTE allegedly violated U.S. sanctions by shipping millions of dollars worth of American-made hardware and software to Iran's largest telecom carrier.

The U.S. restrictions on ZTE are some of the toughest ever applied and would significantly disrupt ZTE's sprawling global supply chain.

The restrictions ban U.S. companies from exporting to ZTE any technology, software, or equipment such as chips and processors made in the United States.

But soon after imposing the restrictions in March, the agency offered the company a three-month relief period, which was set to expire June 30.

Based on reporting by Reuters and The Wall Street Journal