China firmly opposes US sanction against ZTE

BEIJING - China has voiced its "strong dissatisfaction" and "firm objection" to US sanctions against telecom equipment maker ZTE Corp., saying the move will "hurt others without benefiting itself."

"This move will severely impair the commercial activities of Chinese firms. China will continue to engage with the US side on the issue," according to a Ministry of Commerce statement Tuesday.

The United States on Monday announced export restrictions on ZTE and three affiliated entities for alleged violation of US export controls on Iran.

"We do not think it [trade restrictions on a Chinese firm] is the right approach to handle economic and trade disputes. This approach will only hurt others without necessarily benefiting oneself," said Foreign Minister Wang Yi at a press conference Tuesday in Beijing.

Wang called for the two sides to cooperate.

Trading on ZTE stocks in Hong Kong and Shenzhen was suspended from Monday as a result of the export restrictions.

In a statement, the Shenzhen-headquartered company stressed that it complied with the laws and regulations of all jurisdictions in which it operates, and it will continue to cooperate with the US side to resolve the issue.

Major Chinese telecom equipment makers, including Huawei and ZTE, have been subject to frequent questioning by US investigators over US information security since 2011, which undermined major deals with US companies.

"Besides the upcoming election in the US, it is likely that the cause is driven by the desire to restrict free trade to contain the development of the Chinese telecommunication sector," said Xiao Yaofei, a professor with Guangdong University of Foreign Studies.