US grants China's ZTE temporary reprieve on export curbs

The US government will give Chinese telecom equipment and smartphone maker ZTE Corp a three-month reprieve on tough export restrictions it imposed this month, the Commerce Department said on Tuesday.

The department on March 8 imposed some of the toughest-ever US export restrictions on ZTE for allegedly breaking US sanctions against Iran.

The agency said it would ease the restrictions until June 30.

Experts had said the restrictions would have caused disruption across ZTE's sprawling global supply chain.

The restrictions would have banned US companies from exporting to ZTE any technology, software or equipment such as chips and processors made in the United States.

The decision would also have prevented software makers from selling typical office applications like Microsoft Windows - or even providing updates.

The easing, which will suspend the restrictions as of Thursday, could be extended provided that ZTE was timely in performing undertakings and cooperates with the US government in "resolving the matter", the Commerce Department said. An agency spokesman declined to comment further.

Shenzhen-based ZTE said it continued to work with the US government over the export curbs.

The restrictions have drawn protests from the Chinese government and rocked ZTE's business.