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Telecommunications Giant ZTE Asks to Stay Off U.S. Blacklist

Published 02/03/2020, 11:01 PM
Updated 02/03/2020, 11:18 PM
© Reuters.
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By Alex Ho

Investing.com - Hong Kong-listed telecommunications gearmaker ZTE Corp-H (HK:0763) on Monday asked the U.S. Federal Communications (FCC) to keep it off a blacklist that has barred the company from selling equipment to U.S. firms.

ZTE and Huawei were designated as national security risks in November by FCC. In a filing on Monday, ZTE asked the U.S. authority to "take additional time to assess ZTE’s enhancements in the area of U.S. export control and economic sanctions compliance and security controls in ZTE products."

ZTE added it has "spent hundreds of millions of dollars to implement a compliance program relating to U.S. export control compliance regulations."

ZTE’s shares in Hong Kong jumped 4.5% to HK$27.00 in morning trade on Tuesday.

Huawei was another company deemed as risks to U.S. national security. In a 200-page filing, the company said the intent of the action was “to single out Huawei for burdensome and stigmatizing restrictions, put it out of business in the United States, and impugn its reputation here and around the world." It called the effort "unlawful and misguided."

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