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Tuesday, June 28, 2016
U.S. Extends Reprieve To ZTE On Export Restrictions


The U.S. Commerce Department has extended through August 30 a reprieve to ZTE on tough export restrictions imposed on the Chinese smartphone maker in March.

The renewed Commerce Department license allows ZTE to continue exporting equipment containing U.S. technology. The agency said in March that its first reprieve could be extended if the company cooperated with the government.

"We are very pleased by today’s decision. This extension of relief reflects ZTE’s continuing efforts to fulfill its commitments to create a best-in-class compliance program," ZTE said in a statement.

"It also recognizes ZTE’s determination to cooperate with authorities, resolve the ongoing investigation and share information as requested."

The restrictions would have banned U.S. companies from exporting to ZTE any technology, software or equipment such as chips and processors made in the United States. The decision would also have prevented software makers from selling typical office applications like Microsoft Windows.

ZTE had been offered a three-month relief from the restrictions, which was set to expire June 30. The Commerce Department announced the extension in a notice posted Monday.

The Commerce Department investigated ZTE for alleged export-control violations - shippment contracts of American-made hardware and software to Iran's largest telecoms carrier.



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