Rep Schiff Praises Sanctions on Chinese Telecom Company ZTE

House Intelligence Committee Ranking Member Adam Schiff (D-CA) praised the Obama Administration's decision to impose export restrictions on China’s ZTE, one of the country’s top telecommunications equipment manufacturers. Ranking Member Schiff said the move could help curb Beijing’s extensive cyber espionage campaign, long believed to be aided by China’s biggest companies. “We hope this sends a strong message to ZTE, to China and to other Chinese telecommunications companies who present serious national security risks not only by evading export controls, but by purposefully compromising supply chain security,” Ranking Member Schiff said.

The Commerce Department did not specifically cite surveillance concerns in its public notice but said it was slapping restrictions on ZTE because of an alleged scheme to re-export items to Iran in violation of US law. Commerce pointed to ZTE documents revealing a plan to use shell companies to evade export controls. The restrictions will make it more difficult for ZTE to acquire US hardware. ZTE likely relies on US chipsets to manufacture its products, including mobile phones, routers and telecommunications software systems.