China is reportedly set to appeal stringent trade restrictions levied on smartphone maker ZTE last week, according to Reuters.
A U.S. Commerce Department official told Reuters Wednesday the agency is currently in “constructive” discussions with ZTE as the pair work to seek a resolution.
ZTE has said previously it “strives to ensure all operational activities adhere to international trade practices and the laws and regulations of host countries,” and has been in constant communication with U.S. officials.
A timeline for the potential removal of the restrictions was not provided.
Last Tuesday, the Commerce Department hit ZTE with a set of strict export restrictions in the wake of allegations the company violated U.S. export controls on Iran. The restrictions will force any ZTE supplier that wants to ship America-made products to the company in China to apply for an export license.
Reuters previously reported most of those applications will be denied, making it difficult for U.S. products to reach ZTE.
The penalties came despite a substantial lobbying effort from ZTE, which has spent $5.1 million in Washington in the last four years.
According to lobbying documents obtained by Reuters, ZTE’s areas of focus included cyber security, supply chains and trade relations.
ZTE’s lobby spending outpaced that of major competitor Huawei by about $1 million, Reuters said.
Filed Under: Industry regulations