US imposes restrictions on ZTE over Iran deals
THE UNITED States government has imposed trade restrictions on Chinese telecommunications firm ZTE after it found the latter selling hightechnology items to Iran in violation of US laws, national security and foreign policy interest.
In a notice, the US commerce department cited that mobile phone-maker ZTE illicitly reexported controlled items to Iran through shell companies in violation of US export laws.
This led the US department to impose export restrictions on ZTE that essentially prohibit US companies from selling a wide array of restricted goods, in- cluding computers, software and telecommunications equipment to ZTE.
ZTE attempted to establish a national broadband network in the Philippines in 2007 during the term of then President Gloria Macapagal Arroyo, but the deal fell through following allegations of corruption in the award of the $329-million contract.
This prompted Philippine Rep. Rolex Suplico to file an impeachment complaint against Arroyo in connection to the anomalous ZTE deal and recently warned that ZTE’s links to corruption in the Philippines should make regulators and government agencies wary about their involvement once again in building a broadband network in the country.
The Chinese telco firm was earlier said to have participated in the deal with San Miguel Corp. (SMC) and Australia’s biggest telco company Telstra Corp., but ZTE’s transactions relating to the venture apparently failed following US trade restrictions, given Australia’s history of alliance with US policies.
Both SMC and Telstra Corp. have ended negotiations over a planned joint telecom venture in the Philippines.
Reports said that as early as 2013, the US already prohibited government agencies from buying ZTE products as the telecoms equipment company posed a national security risk.
ZTE was banned from bidding for US government contracts because of suspicions that they undertake industrial espionage for China.
ZTE has denied the allegations. ZTE is also concerned about recent reports relating to a US Department of Commerce investigation, claiming that the company “maintains constant communication with the associated department and is committed to fully address and resolve any concerns.”