ZTE is set to appeal on U.S. export sanctions following the failure of lobbying efforts. (Photo : Getty Images)
Chinese telecommunications company ZTE Corp. plans to appeal U.S. export restrictions that took effect last week after lobbying efforts have been unsuccessful.
According to The Wall Street Journal, the United States' Department of Commerce applied the ban to the telecommunications supplier because the Chinese company allegedly exported American goods to Iran and other countries.
On Tuesday, a commerce department senior official revealed that the company and the U.S. government are currently in talks to find a solution for the issue.
"The U.S. Department of Commerce and ZTE Corp. are in ongoing discussions. These discussions have been constructive, and we will continue to seek a resolution," the official explained to Reuters.
According to the outlet, ZTE Corp. had been accused of engaging in deals with Iran in 2012.
Because of this, the Guangdong-based company increased its investment on lobbyists in Washington from $212,000 in 2011 to $5.1 million for the past four years.
In fact, Reuters revealed that ZTE used five lobbying firms, boosting the efforts with the involvement of former Nebraska congressman Jon Lynn Christensen.
On behalf of ZTE, Christensen convened with several U.S. bureaus such as the Department of Treasury and the Department of Commerce, as well as some legislators, to provide education on "cybersecurity issues" and "supply-chain security."
"My work was educating members of congress on a smartphone manufacturer and the opportunities (ZTE) provided for a very affordable phone," Christensen explained.
Meanwhile, Chinese Commerce Minister Gao Hucheng expressed the Chinese government's protest against the sanction given to ZTE.
Gao also expressed the Chinese government's hopes for the speedy removal of ZTE from the restriction list to avoid "harming the stable, healthy development of China-U.S. economic and trade relations."
According to Washington lawyer Doug Jacobson, the export ban on ZTE Corp. proved to have a significant effect not only on the company, but to the Chinese government as well, as the country is hindered from procuring technology supplies from the U.S.
