In April 2018, the US Department of Commerce announced that it had activated a 7-year denial of export privileges order in respect of Chinese telecoms company ZTE (Zhongxing Telecommunications Equipment Corporation and ZTE Kangxun Telecommunications Ltd) (previous blog).
In June 2018, ZTE agreed to a $1.4 billion settlement to replace the 7-year denial order (previous blog). However, until all elements of that new settlement have been implemented, the 7-year denial order will continue to take effect.
Yesterday (2 July 2018), the Department of Commerce announced that in the interim it has granted ZTE’s request for authorisation to engage in conduct otherwise prohibited by the 7-year denial order. The authorisation allows, from 2 July until 1 August 2018, the following:
- Continued operation of existing networks and equipment;
- Support to existing handsets;
- Cybersecurity research and vulnerability disclosure; and
- Limited transfer of funds.