China has called on Washington to avoid damaging business confidence following a report USA authorities are investigating whether Chinese tech giant Huawei violated sanctions on Iran. Justice has been focused on sanctions violations, but other parts of government, including the White House and Congress, are taking action against Chinese companies under the pretext of national security.
Several ZTE vendors watched their stock prices stumble in recent days, collateral damage after the Commerce Department put in place a seven-year ban, as national-security and trade-related tensions flare up between the US and China.
"We hope that the USA doesn't take any further steps to damage confidence in the American business environment", Hua said at a regular press briefing.
"Huawei complies with all applicable laws and regulations where it operates, including the applicable export control and sanction laws and regulations of the UN, US and European Union", spokesman Charles Zinkowski said in a statement.
Washington imposed almost $1 billion of fines on ZTE for allegedly illegally shipping USA goods to Iran.
Based on what we've seen so far, do you think the United States' hostility towards Huawei is warranted?
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The Commerce Department ban was ignited when ZTE admitted in March that while it had fired four senior employees, it had not disciplined or reduced bonuses to 35 others when it said it had.
"ZTE will not give up its efforts to resolve the issue through communication, and we are also determined, if necessary, to take judicial measures to protect the legal rights and interests of our Company, our employees and our shareholders, and to fulfill obligations and take responsibilities to our global customers, end-users, partners and suppliers", said ZTE.
With a trade spat escalating between the USA and China, and fresh from American phone networks AT&T and Verizon withdrawing their support of the Chinese brand - most handsets sold in the United States are subsidised by carriers - that dream appears further out of Huawei's reach.
Reuters reported that since at least 2016, USA authorities have been probing Huawei's alleged shipping of US -origin products to Iran in violation of US sanctions law.
An export ban is also very likely on the table.
The order "sends the wrong message" to other companies who may be considering settling with the Commerce Department over export control issues, ZTE said.