The US Department of State’s Bureau of Industry and Security (BIS) has removed from the Entity List China’s telecommunications equipment firms Zhongxing Telecommunications Equipment Corporation and ZTE Kangxun Telecommunications Ltd., known collectively as ZTE. The action follows the agency’s recently announced, record-breaking settlement for US export controls violations, according to which those entities agreed to pay US$661 million to resolve claims of unlawful exports of US items to sanctioned countries, including Iran and North Korea.

The removal of these entities from the Entity List eliminates the licence requirements for exports, re-exports and transfers (in-country) to these entities. However, the BIS simultaneously added former ZTE CEO Shi Lirong to the Entity List, imposing a licence requirement for all items subject to the Export Administration Regulations (EAR) and a licence review policy of presumption of denial for Shi Lirong.