As of March 8, 2016, Zhongxing Telecommunications Equipment Corporation (ZTE Corporation) will be added to the Entity List published by the U.S. Department of Commerce. This means that no company may export, reexport, or transfer items from the United States or any other items subject to the Export Administration Regulations (EAR) to ZTE. This includes hardware, chips, software, and technology. The listing is scheduled to be published tomorrow morning in the Federal Register. An advanced copy can be viewed at: https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-05104.pdf.

The listing of ZTE does not, however, prohibit a U.S. company from collecting licensing fees for patents or technologies that have already been transferred to ZTE.

These sanctions on ZTE are levied based upon the U.S. government's belief that ZTE has been evading U.S. export control rules by diverting items subject to the EAR to U.S.-embargoed destinations.

If you would like to discuss this matter, please contact Josephine Aiello LeBeau, 202-973-8813, jalebeau@wsgr.com; Anne Seymour, 202-973-8874, aseymour@wsgr.com; or any member of the export control and economic sanctions regulatory practice at Wilson Sonsini.