There is a growing concern that the trade war between the United States and China will reignite. The US Department of Commerce has limited its deals with US companies over the next seven years for China`s telecommunications equipment maker ZTE. China immediately made an antidumping preliminary ruling against US imports. Analysis, the nerves surrounding the US and China`s advanced technology expected to be the fuse of a new trade war.

The US Department of Commerce has ordered ZTE, which has violated North Korea and Iran sanctions, to deal with US companies for the next seven years. The additional sanctions were imposed after the US imposed a fine of USD 1.9 billion (about USD 1.25 trillion) on violations of sanctions imposed by Iran. The background is that ZTE made false statements in the past investigations of the Department of Commerce.

ZTE has been investigated by the Department of Commerce for suspicion of supplying USD 32 million worth of hardware and software purchased from US companies from January 2012 to March 2016 to TIC, a Iranian telecommunications operator, without proper authorization. Last year, ZTE agreed to plead guilty to US allegations of violating the US ban on export bans in the Texas federal courts last year and to pay a fine of USD 1.9 billion. It was the largest penalty ever for violating sanctions. With additional sanctions, ZTE will no longer be able to import semiconductor products and technologies from American companies over the next seven years.

The measure was effective immediately after the Commerce Department announced it. A US Department of Commerce official said that "ZTE is a measure to prevent further illegal activities," and said ZTE has no "exit" to reverse the action.

China`s Ministry of Commerce has decided to take preliminary anti-dumping measures in the form of deposits from the 18th, saying that it is causing actual damage to the related business in China by the dumping act of the United States. Accordingly, US import traders must pay a maximum deposit of 178.6% depending on the dumping margin. "We will continue to investigate US imports and make a final decision on future dumping," the Commerce Department said.

Meanwhile, Britain has also taken action against ZTE. A British Cyber security official warned UK mobile operators to avoid using ZTE devices, the Wall Street Journal reported. The official explained that the Chinese authorities may infiltrate the communication infrastructure and destroy it.

ZTE, founded in Shenzhen, China, is the world`s fourth largest telecom equipment maker. Chinese government agencies are major shareholders and major shareholders. ZTE is known to procure 25-30% of parts for smart phones and telecommunications equipment in the United States.

Earlier this month, the US Federal Communications Commission (FCC) chaired the US Federal Communications Commission (FCC) on March 26, when mobile carriers and high-speed Internet service providers used the USD 8.5 billion subsidy program, the Universal Service Fund (USF) And to prevent them from offering. The FCC will vote first on the proposal of Pie Chairperson on April 17. It is analyzed as targeting Huawei and ZTE in China.

Also in February, the US Senate initiated a bill to prevent Huawei or ZTE from purchasing or renting communications equipment because of spyware.

By Kim Ji Young kjy@


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