The US Commerce Department imposed restrictions on US suppliers providing crucial components to ZTE for alleged Iran sanctions violations, a move likely to disrupt its global supply chain.
A US Commerce Department official said he and ZTE Corp are in ongoing discussions,. These discussions have been constructive, and they will continue to seek a resolution.
In statements following the imposition of the restrictions, ZTE said it was “actively facilitating communications with the U.S. governmental department to search for a solution.”
Since coming under fire in 2012 for alleged deals with sanctions-hit Iran and possible links to the Chinese government and military, ZTE has ramped up its spending on Washington lobbyists.
It spent $5.1 million in the last four years, up from $212,000 in 2011, as it sought to assuage national security concerns, according to publicly available lobbying records maintained by Congress.
ZTE lobbyists contacted lawmakers in both houses of Congress, the Department of Homeland Security, the Department of Commerce, the State Department and the National Security Agency to discuss matters such as cyber security, supply chains and trade relations, according to the lobby documents.
ZTE used at least five lobbying firms, and former US officials such as ex-Nebraska congressman Jon Lynn Christensen.
Christensen met with US Department of Treasury, Department of Commerce and lawmakers to provide “education regarding supply-chain security” and “cyber security issues,” the lobby disclosure documents show.
It seems that the efforts failed to convince lawmakers mostly because they are a “Communist Chinese company” who does what every their government says. Rather than being a capitalist company which tells the government how to behave.