China appeals ZTE Business Ban, a continuation of China and US' trade war

China asked the United States to reconsider the seven-year ban which prohibited American companies from selling components and software to Chinese telecom equipment firm ZTE. The appeal regarding this was the result of trade talks held in Beijing between senior officials from the two countries, heading off a trade war.

The ban was imposed last month by Washington after accusations that ZTE breached an agreement to punish employees after the Chinese company shipped US goods to Iran, violating US sanctions.

People in China have seen the move as part of a trade rivalry between two of the world’s high economy countries. However, United States officials responded, saying that the action was not related to broader trade policy.

It was said that Chinese negotiators asked the US to hear the appeal of ZTE, consider the company’s efforts to improve compliance, and amend the existing ban. The Ministry of Commerce of China said that Chinese officials had made solemn representations to U.S. representatives.

They said that they attach importance to China’s representations and will report China’s stand to U.S. President Donald Trump. The ban imposed on ZTE indicated a threat on the Chinese company’s smartphone business and highlighted their reliance on semiconductor imports and growing trade tensions with the United States.

ZTE also said that if the ban is upheld, they could face broader repercussions with a significant impact. The prohibition could block their access to essential hardware from companies like Qualcomm and probably even the use of Google’s Android software.

The Chinese government also stated that the ban emphasized the need for the country to reduce reliance on non-domestic technology.

The company described the prohibition as unacceptable and a threat to its survival. One spokesman of the ministry said that after the announcement of the ban, China would take necessary steps in response to the action against the Chinese firm.