The company says that it has taken steps since 2016 to improve its Export Control Compliance program, and states that BIS is wrong to impose the harshest penalty against ZTE before an investigation is completed.
"The most urgent priority is to ease the disastrous impact on ZTE caused by US sanctions through efforts from multiple sides", the CCPIT said, noting that it would be "unrealistic" to ask the United States to remove the order.
ZTE disagrees, saying it had invested $50 million in export control compliance projects last year, and that it will add more, this year. The official said ZTE doesn't have administrative appeal rights under agency regulations, but the agency had agreed to receive the evidence through informal procedures in the near future.
Aside from illicit distribution of American resources, the U.S.is also accusing ZTE of lying to officials, "and obstructing justice including through preventing disclosure to and affirmatively misleading the U.S. Government".
The episode with ZTE could risk escalating the trade disputes between China and the U.S. Both have traded threats of placing billions of dollars in tariffs but technology had been one area of particular contention. The move was sparked by ZTE's violation of an agreement that was reached after it was caught illegally shipping US goods to Iran.
Tensions between the US and China are at the highest level in years.
The Treasury investment restrictions are aimed partly at pressuring China to lift requirements for foreign companies to form joint ventures with local firms that lead to technology transfers, a policy the administration deems unfair when the United States has no such restrictions on Chinese firms.
Yin Yimin, chairman of ZTE, said at a press conference held on Friday afternoon that the company is firmly opposed to the USA ban, which is likely to put the company "in shock" and cause direct losses to its global clients, including carriers and consumers, and its shareholders.
ZTE relies on suppliers from chipmakers Qualcomm Inc. and Micron Technology Inc.to optical developers Lumentum Holdings Inc. and Acacia Communications Inc.
A US ban on sales of American components to ZTE Corp (0763.HK) (000063.SZ) has unleashed a patriotic backlash in China's cyberspace, highlighting the growing tension between the world's two largest economies.
As part of the settlement for violating trade sanctions on Iran and North Korea, ZTE had agreed to pay US$1.2 billion in penalties to the U.S. government in return for a suspended seven-year ban during a probationary period.