US extends sanctions relief for alleged Iran trade violator

The U.S. government is extending sanctions relief for a Chinese telecommunications equipment company, ZTE Corp., alleged to have violated trading restrictions on Iran.

It’s the second time the U.S. has decided to grant temporary sanctions relief to the company.

{mosads}ZTE landed in water hot water last March for allegedly violating U.S. trade rules with a purported plan to re-export items to Iran.

The government placed ZTE on a blacklist that prevented U.S. companies from supplying the Chinese firm with various tech components and software. The restrictions were a blow to the company, which relies on American tech components to manufacture its products.

The U.S. first granted sanctions relief until June 30, adding that it would be renewable if the Chinese firm fully cooperated with authorities, reports The Wall Street Journal.

“We are pleased by today’s decision to renew our Temporary General License because it reflects ZTE’s continued efforts to fulfill our commitment and improve our compliance program so that it is best-in-class,” ZTE said in a statement the company released on Thursday. “It also recognizes ZTE’s determination to cooperate with authorities, share information as requested and resolve the ongoing investigation.”

Chinese Commerce Minister Gao Hucheng expressed his hopes to Chinese state media that the sanctions would ultimately be lifted for good “in order to avoid harming the stable, healthy development of China-U.S. economic and trade relations.”

According to the Department of Commerce, the new extension will be granted until Nov. 28, 2016.

U.S. export control experts told the Journal that at that time there could be another extension of sanctions relief or a potential settlement to finally resolve the issue.