China’s ZTE granted 1-month reprieve from US export denial order

ZTE.jpgIn 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:

  1. Continued operation of existing networks and equipment;
  2. Support to existing handsets;
  3. Cybersecurity research and vulnerability disclosure; and
  4. Limited transfer of funds.
This entry was posted in China, Export controls, USA by Maya Lester QC. Bookmark the permalink.

About Maya Lester QC

Maya Lester QC has a wide ranging practice in public law, European law, competition law, international law, human rights & civil liberties. She has a particular expertise in sanctions. As the most recent (2016) Chambers & Partners directory put it, she "owns the world of sanctions". She spent 2011-12 in New York at Columbia Law School lecturing and writing on sanctions. She represents and advises hundreds of companies and individuals before the European and English courts and has acted in most of the leading cases, including Kadi, Tay Za, Central Bank of Iran, NITC and IRISL.

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