China telecom giant ZTE faces US 'restrictions'

Chinese telecommunications equipment giant ZTE said on Monday that it is facing US government restrictions, after a media report that the company allegedly violated US export controls on Iran.

In statements to the Hong Kong and Shenzhen stock exchanges, ZTE said trading in its shares had been halted at its request over the "United States Commerce Department's proposal to implement export restrictions on the company" but gave no further details.

ZTE is China's second-biggest telecom equipment maker.

News agency Reuters reported that the restrictions mean ZTE's suppliers must apply for an export licence before shipping any US-made equipment or parts to the Chinese company.

The report, which quoted documents and a senior official at the US Commerce Depart-ment, said the measures will take effect on Tuesday.

Asked about the issue, China's foreign ministry on Monday criticised US government actions against the country's companies.