ZTE ban on receiving United States exports is revived through March 2025
- Author: Darren Santiago Apr 17, 2018,
Apr 17, 2018, 10:43
Separately, the U.S. Commerce Department today said it blocked ZTE from exporting sensitive technology from the United States due to what the agency said was ZTE's false claim that it reprimanded employees involved in illegally shipping telecom equipment to Iran and North Korea.
For ZTE, it has been a rough 24 hours, with the United States government hitting the company with a USA export ban.
The order against ZTE also means American companies can no longer sell any type of technology to ZTE to minimize the chances that ZTE would once again export that technology elsewhere.
ZTE was fined US$1.19 billion in March 2017 and also agreed to a seven-year suspended export ban which would take effect if it was found to be in violation of the Export Administration Regulations.
Denying ZTE export privileges prevents the company from "participating in any way in any transaction" subject to the USA government's Export Administration Regulations, which govern sales of sensitive technology overseas. In fact you might only recognise them for that weird dual-screen phone that's coming to the United Kingdom very soon. "This egregious behavior can not be ignored", Commerce Secretary Wilbur Ross said in the statement.
"This will be devastating to the company, given their reliance on USA products and software", said Jacobson. The U.S. government has warned American consumers and businesses to steer clear of Huawei devices.
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The restrictions ban USA companies from selling hardware and equipment to China's ZTE.
"ZTE acknowledges the mistakes it made, takes responsibility for them, and remains committed to positive change in the company", ZTE's Chairman and Chief Executive Officer Zhao Xianming said at the time.
On its website, ZTE says it is the fourth largest supplier of smartphones in the US, serving all four major wireless operators with low and mid-price handsets - including devices for pre-paid plans.
ZTE "provided information back to us basically admitting that they had made these false statements", said a senior department official. It then paid a full bonus to the employees that engaged in these practices and gave false information, moves the USA found to be against the settlement terms agreed upon. -China relations-which stretches from a proposed FCC action against ZTE, Huawei and other companies to Trump's allegation that China and Russian Federation are intentionally devaluing their currencies-the department's action against ZTE takes on an added significance.
The US government had allowed the company continued access to the US market under the 2017 agreement.
The Commerce Department said ZTE was supposed to fire four senior employees and discipline 35 others, whether by reducing their bonuses or issuing them a letter of reprimand.