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China Approaches US To Relax ZTE Ban

07 May 2018

The US had imposed the ban after it alleged the Chinese company had broken a settlement agreement with repeated false statements (regarding breaching US sanctions on Iran and North Korea), and the ban was punishment for violating the terms of the settlement agreement.

The Chinese smartphone company received the ban when it was discovered that they had sold telecommunications equipment to Iran and North Korea - two countries that are now on the US' sanctions list.

While U.S. officials have said the action against ZTE was not related to broader trade policy, the move has been seen by many in China as part of the broader trade spat playing out between the world's No.1 and No.2 economies.

China's Ministry of Commerce said in a statement earlier on Friday that Chinese officials had made "solemn representations" over the ZTE case to the USA delegation. In the meantime, the listing of ZTE shares on the Hong Kong and Shenzhen stock exchanges has been suspended since the United States decision.

It has also been noticed that China is heavily relied on the imports from United States.

Dealing in ZTE stocks in Hong Kong and Shenzhen was halted since the united states announcement.

ZTE's exchange filing on Sunday did not give details of its request or say when it had been made, but it did say that the company had provided additional material at the BIS's request.

DBS Vickers analyst Tam Tsz-Wang told Reuters the ZTE request appeared to be procedural.

China built "solemn representations with the usa" - an official diplomatic demonstration - throughout the negotiations and secured a toast by the trade staff to relay the concerns US President Donald Trump, " China's commerce ministry said in a statement Friday.

"However long a road, it has an end".

China Approaches US To Relax ZTE Ban