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ZTE presents additional evidence for the Commerce Department



WASHINGTON-Chinese Telecommunications Company

ZTE
Corp.

will be given the opportunity to provide the US authorities with additional evidence that has imposed harsh sanctions on the company this week.

A senior US Department of Commerce official said late Friday that the agency had agreed to ZTE's request to provide more information. The official said ZTE did not have an administrative complaint under the agency's rules, but the agency has agreed to receive the evidence in the near future through informal procedures.

Meanwhile, "we do not believe that a stay" of sanctions is appropriate, said the official.

Earlier this week, the Commerce Department banned US companies from selling products to ZTE for seven years, accusing the Chinese telecommunications equipment supplier of not punishing employees for sanctions against North Korea and Iran.

It was not. It is immediately clear what kind of information ZTE wants to provide, or whether the company could succeed in persuading the US authorities to relax the penalties they have announced. ZTE officials were not immediately available for comment.

The smartphone maker has drawn attention to the potential impact of sanctions on American companies. "The rejection decision will not only severely impact the survival and development of ZTE, but will also damage all of ZTE's partners, including a large number of US companies," ZTE said in a statement released on Friday.

Write to John D. McKinnon at john.mckinnon@wsj.com


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