The US Department of Commerce is banning American companies from selling parts to Chinese telecom equipment maker ZTE for seven years for breaking the regards to a sanctions infraction case.

The Chinese company pleaded guilty in 2015 in federal court in Texas for conspiring to break United States sanctions by unlawfully delivering United States goods and technology to Iran. It paid $890 million in fines and penalties, with an extra penalty of $300 million that might be enforced.

As part of the agreement, Shenzhen-based ZTE Corp assured to dismiss four senior workers and discipline 35 others by either lowering their rewards or reprimanding them, senior Commerce Department officials informed Reuters. But the Chinese business admitted in March that while it had fired the four senior employees, it had not disciplined or minimized perks to the 35 others.

Chinese telecoms equipment group ZTE Corp countered in February against concerns from US lawmakers that it is a lorry for Chinese espionage, saying it was a relied on partner of its United States clients.

China is trying to gain access to sensitive United States innovations and intellectual properties through telecommunications business, academic community and joint organisation ventures, United States senators and spy chiefs warned on Tuesday.

Republican Senator Richard Burr, chairman of the Senate Intelligence Committee, stated he was worried about the ties to the Chinese government of Chinese telecoms business like Huawei Technologies Co and ZTE.