US Commerce Dept. Bans ZTE from Exporting Tech
ZTE is not allowed to export sensitive technology from the U.S. due to new action from the U.S. Department of Commerce. Moreover, U.S. tech suppliers (such as Qualcomm) cannot sell components to ZTE for a period of seven years. ZTE violated the terms of an agreement it made with the government over previous transgressions and the Commerce Department is coming down on the company hard. Officials at the agency say ZTE made false statements to the Bureau of Industry and Security in 2016 and 2017 concerning executive pay and disciplinary action related to the company's earlier transgressions. In 2016, ZTE was temporarily blocked for exporting forbidden technology to Iran. In 2017, ZTE agreed to pay a huge fine to settle the matter, as well as fire four executives and discipline 35 other managers. In the wake of those events the company did not take the proper disciplinary action, according to the Commerce Department. "ZTE misled the Department of Commerce. Instead of reprimanding ZTE staff and senior management, ZTE rewarded them. This egregious behavior cannot be ignored," said Commerce Secretary Wilbur Ross. While ZTE did in fact fire four managers, the company recently admitted it did not take any action at all against the other 35 managers. "We can't trust what they are telling us is truthful," said an official to Reuters. "And in international commerce, truth is pretty important." A lawyer representing companies that sell products to ZTE warned of dire consequences. "This will be devastating to the company, given their reliance on U.S. products and software," said Douglas Jacobson. "It's certainly going to make it very difficult for them to produce and will have a potentially significant short and long-term negative impact on the company." ZTE did not comment on the matter directly.
ZTE Agrees to Pay Massive Fine to Settle Export Violations
Mar 7, 2017
ZTE today said it has agreed to pay the U.S. government significant financial penalties for exporting technology to Iran in violation of sanctions against the country.
ZTE Runs Afoul of Commerce Dept., Facing Export Ban
Mar 6, 2016
ZTE has allegedly violated export rules to Iran and the U.S. Department of Commerce is prepared to restrict what American-made components ZTE is allowed to acquire.
China Requests US to Dial Back ZTE's Punishment
May 4, 2018
China hopes he U.S. will have a change of heart and alter the seven-year ban it imposed against ZTE.
Commerce Department May Relax ZTE's Punishment as Trump Defends Stance
May 14, 2018
Wilbur Ross, the U.S. Secretary of Commerce, said his department is open to changing its ban impacting ZTE.
ZTE Vows to Fight Ban, Says Denial Order Will 'Severely Impact' the Survival of the Company
Apr 20, 2018
ZTE today said the ban issued by the Commerce Department is unfair and overly severe in what mark its first public comments since the ban was announced. "The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of U.S.