The United States is imposing export restrictions on China’s ZTE Corp and three other entities over an alleged scheme developed by the telecoms equipment maker to re-export controlled items to Iran, contrary to U.S. law, Reuters reported, quoting a U.S. notice on Monday.
The U.S. Commerce Department, in the public notice, cited ZTE documents that showed the mobile handset maker planned to use shell companies in the scheme, leading the department to impose export curbs that will make it harder for ZTE to acquire U.S. products.
The Commerce Department said the decision will be effective beginning Tuesday.
The export curbs also apply to two of its Chinese affiliates, ZTE Kangxun Telecommunications Ltd and Beijing 8-Star, and an Iranian company, ZTE Parsian, the notice said.
