China asks the U.S. to scale back its ZTE export ban

China asks the U.S. to scale back its ZTE export ban

The Pentagon intends to stop selling phones of Huawei and ZTE in the outlets on US military bases in different countries. "In light of this information, it was not reasonable for the stores Department continued to sell them", - said the representative of the press service of the Pentagon Michael Dave Eastbourne.

"Huawei and ZTE devices may pose an unacceptable risk to the department's personnel, information and mission", Army Maj. ZTE has largely weathered the broader US spying concerns better, due in part to a broader footprint in the States than Huawei, but the company admitted that this latest ban would be downright devestating.

The ban on sales to ZTE, which is heavily reliant on imports of USA chips, had threatened to scupper the Chinese firm's smartphone business. According to him, these points were sold 2400 phones Huawei and ZTE previous year.

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The move would not make much of an impact on those companies' overall sales - just 2,400 such devices were sold at the locations catering to USA military personnel on or near its bases - but it would represent another battle over the ability of Huawei and ZTE to access the US market.

There's a loophole, though; any military member can still use these devices if they buy them elsewhere, and there's no restriction on that despite a warning that they may not be safe. The Chinese officials would like the USA to listen to ZTE's appeal over the ban, sources told Reuters. Sources are claiming that China itself is now appealing to Washington, hoping it will revise its decision and allow trade between US companies and ZTE to resume.

The Commerce Department announced a major export ban to ZTE in April, alleging that the Chinese telecommunications giant lied about actions it would take after it plead guilty to illegally shipping United States equipment to Iran and North Korea.

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