2. Export controls

U.S. Penalizes Chinese Telecom Company ZTE $1.19 Billion Penalty for U.S. Export Violations to Iran and North Korea

On 07 March 2017, the U.S. announced that China’s Zhongxing Telecommunications Equipment Corporation and ZTE Kangxun Telecommunications Ltd., (ZTE), has agreed to a record-high combined civil and criminal penalty of $1.19 billion, after illegally shipping telecommunications equipment to Iran and North Korea in violation of U.S. export controls and sanctions.

U.S. BIS New Rule regarding Exports to Hong Kong

The U.S. Bureau of Industry and Security has adopted a new rule, effective as of 19 April 2017, regarding (re)exports of certain items to Hong Kong. The new rule provides that any export to Hong Kong of an item controlled for NS, MT, NP Column 1, or CB reasons needs an import license from Hong Kong or a statement from Hong Kong that a license is not necessary.