Washington: The US government will give Chinese telecom equipment and smartphone maker ZTE Corp a three-month reprieve on tough export restrictions it imposed earlier this month, the Commerce Department said on Tuesday.


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The department on March 8 imposed some of the toughest-ever US export restrictions on ZTE for allegedly breaking US sanctions against Iran.


The agency said it would ease the restrictions until June 30th.


Experts had said the restrictions would have causeddisruption across ZTE`s sprawling global supply chain.


The restrictions would have banned US companies fromexporting to ZTE any technology, software or equipment such aschips and processors made in the United States.


The decision would also have prevented software makers from selling typical office applications like Microsoft Windows or even providing updates.


The easing, which will suspend the restrictions as of Thursday, could be extended provided that ZTE was timely in performing undertakings and cooperates with the US government in "resolving the matter", the Commerce Department said. An agency spokesman declined to comment further.


Shenzhen-based ZTE said it continued to work with the US government over the export curbs.


The restrictions have drawn protests from the Chinese government and rocked ZTE’s business.


Its shares have not traded on the Hong Kong stock exchange for the past two weeks. The company also said last week it was delaying the publication of its annual results while it assesses the impact of Washington’s action.


The Commerce Department investigated ZTE for alleged export-control violations following Reuters reports in 2012 that the company had signed contracts to ship millions of dollars worth of American-made hardware and software to Iran`s largest telecoms carrier.