ZTE cries foul over US penalty

Chinese tech company ZTE said Friday it wouldn’t accept an “unfair” US penalty in a case involving exports of telecoms equipment to North Korea and Iran, and is seeking a solution through legal channels.

The Commerce Department on Monday barred the stateowned company from importing American components for seven years after concluding the company paid bonuses to employees involved in the export scheme instead of disciplining them as promised in 2017.

In a statement issued Friday, the company outlined actions it’s taken over the last two years to investigate and rectify matters but said the Commerce Department had acted before the company had time to conclude that process.

“Prior to the wrapping up of that process, the Bureau of Industry and Security imposed the most severe sanction against the company. That is extremely unfair toward ZTE and we cannot accept it,” the statement said.

The penalty “not only threatens ZTE’s existence but also harms the interests of ZTE’s business partner, including a large number of US companies,” it said.

Despite the US government’s action, ZTE would not give up on

That is extremely unfair to ZTE and we cannot accept it.

CHINESE COMMERCE DEPARTMENT

seeking a solution and was confident that through “all methods allowed under the law” it could preserve the rights of the company, its worker and customers, the statement said. /