China firmly opposes US sanction against ZTE

Huawei and ZTE have been active in the US consumer electronics market since the latter half of last year, and the Chinese telecommunication industry, especially terminal products, has gone from strength to strength, said Xiao.

"The US does not want to lose its dominance [...] it is obviously the 'right time' to 'give special treatment' to Chinese companies under the guise of security and international politics," he said.

Earlier on Monday, China's Foreign Ministry also urged the United States to revoke its decision to avoid damage to trade cooperation and bilateral relations.

ZTE offers quality products and services, creates jobs and contributes to economic and social development in the United States, a ZTE senior executive told Xinhua on Tuesday on condition of anonymity.

So far ZTE has 14 offices and 6 research centers in the United States, with 80 percent of its 350 staff being Americans. ZTE currently holds about 7 percent of the US smartphone market, making it the fourth largest manufacturer in the country, after Apple, Samsung and LG. It is also a sponsor of five NBA teams.

The US Commerce Department said Monday in a public notice that it was imposing restrictions because the company had violated the US export controls on Iran.

The department has added ZTE Corp., ZTE Kangxun, Beijing 8-Star, and ZTE Parsian to the Entity List under the Export Administration Regulations, accusing them of re-exporting controlled items to Iran.

The restrictions will make it difficult for the companies to acquire US products as ZTE suppliers must now apply for an export license before shipping any American-made equipment or parts to ZTE.