The US Department of Commerce is banning American Firms from selling Parts to Chinese telecom equipment maker ZTE for seven years for violating the terms of a sanctions violation case, US officials told Reuters.US Bans American Companies From Selling to China's ZTE

The Chinese firm pleaded guilty last year in federal court in Texas for conspiring to violate US sanctions by illegally sending US goods and technology to Iran. It paid $890 million in penalties and fines, with an additional penalty of $300 million that could be imposed.

Included in this agreement, Shenzhen-based ZTE Corp promised to discount four senior workers and subject 35 other people by either reducing their bonuses or reprimanding them senior Commerce Department officials told Reuters. But the Chinese firm admitted in March that although it’d fired the four mature employees, it had not disciplined or reduced bonuses to the 35 other people.

Chinese telecoms equipment group ZTE Corp hit in February against worries against US lawmakers that it is a vehicle for Chinese espionage, saying it was a reliable associate of its US clients.

China is trying to get access to sensitive US technology and intellectual properties through telecommunications companies, academia and joint business ventures, US senators and spy chiefs warned on Tuesday.

Republican Senator Richard Burr, chairman of the Senate Intelligence Committee, said he was concerned about the ties to the Chinese authorities of Chinese telecoms companies like HuaweiTechnologies Co and ZTE.

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