US export restrictions on Chinese ZTE

The US has imposed export restrictions on Chinese smartphone manufacturer ZTE, prohibiting US companies from selling to it without a specific licence, and foreign companies from selling products to it which contain a significant % of US-made components. The US Commerce Department issued a statement saying this was in response to ZTE breaching US sanctions by illicitly re-exporting controlled items to sanctioned countries, and organising  a series of shell companies for this purpose in relation to Iran. 3 such shell companies have also been designated.

The Commerce Department has said that applications for export licences to ship to ZTE will generally be denied, though ZTE is not prohibited from continuing to sell its products in the US.