The US Department of Commerce is banning American Firms from selling components to Chinese telecom Gear Manufacturer 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 company pleaded guilty this past year in federal court in Texas for conspiring to violate US sanctions by illegally shipping US products and technology to Iran. It paid $890 million in penalties and fines, with an additional penalty of $300 million that could be imposed.

As part of this agreement, Shenzhen-based ZTE Corp asserted to dismiss senior workers and discipline 35 others by either decreasing their winnings reprimanding them, senior Commerce Department officials told Reuters. Nevertheless, the Chinese company admitted in March that although it’d fired the four mature employees, it’d not disciplined or reduced bonuses into the 35 others.

Chinese telecoms equipment group ZTE Corp hit back in February against concerns against US lawmakers that it’s a vehicle for Chinese espionage, stating it was a trusted partner of its US customers.

China is hoping to gain access to sensitive US technology and intellectual properties via telecommunications businesses, academia and joint business ventures, US senators and spy chiefs warned on Tuesday.