SHENZHEN-BASED telecommunications equipment maker ZTE Corp. said yesterday its suppliers must seek licenses to provide materials, in line with newly imposed U.S. restrictions on the company.
The news comes a day after the U.S. Commerce Department slapped export restrictions on ZTE for alleged Iran sanctions violations, a move that is expected to disrupt its sprawling global supply chain.
The U.S. Bureau of Industry and Security of the Department of Commerce added ZTE, ZTE Kangxun Telecommunications Ltd., ZTE Parsian and Beijing 8-Star International Co. to its list of companies impacted, ZTE said in a statement.
U.S. suppliers to these companies are required to apply for a license for the supply of the components, effective immediately, it added. Suppliers based elsewhere are not affected.
“The company is conducting a thorough assessment on the potential impacts of the restriction measures on the business and operation of the group,” chairman Hou Weigui said in the statement.
The export restrictions against ZTE drew fire from the Chinese Government, which said it was resolutely opposed to the tough measures but stopped short of announcing retaliation. (SD-Agencies)
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