Published: Tue, April 17, 2018
Economy | By

USA regulators ask if ZTE can hear them now

USA regulators ask if ZTE can hear them now

Otherwise, it said, China is prepared to adopt unspecified measures to defend the interests of Chinese companies.

Viavi Solutions (VIAV) is one company that has business with ZTE, though only a small amount, according to William Blair analyst Dmitry Netis.

The ban - which is in full effect - means American electronics companies such as Qualcomm will not be able supply the company with its processors and hardware for a period of up to seven years. As a result ZTE paid up to $1.2 billion (£837 million) in fines. "Instead of reprimanding ZTE staff and senior management, ZTE rewarded them". ZTE had "misled" it and so it was invoking the seven-year suspension.

The Commerce Department said in a statement it was revoking ZTE's export license. "This egregious behaviour can not be ignored", said U.S. secretary of commerce Wilbur Ross.

These declarations ring rather hollow.

To make matters worse, the U.S. department found that ZTE also lied about its actions and provided "false statements to the (country's) government" after they had been caught on put on its Entity List.

"We can't trust what they are telling us is truthful", the official continued.

ZTE under suspicion: The Chinese company has raised concerns among United States lawmakers about how independent it is from the Chinese government. It was further noted in the denial order that ZTE was "repeatedly lying to BIS and other US law enforcement agencies and engaging in a cover-up scheme to destroy. remove, or sanitize evidence". (NYSE:T), T-Mobile US Inc.

The ban had been put in place in response to ZTE's violation of trade sanctions on Iran and North Korea, the USA said. Its shares fell 35 percent in trading yesterday.


According to the press release, this denial order against ZTE is a regulatory action and has nothing to do with the ongoing trade war between the U.S.A and China. The event is free for communications service providers!

Back in 2012, a U.S. Congressional Report stated that Huawei and ZTE could be a threat to national security.

The moves come just weeks after the Trump administration stymied Singapore-based Broadcom's takeover of Qualcomm.

The British decision to ban ZTE was taken on national security grounds.

Warning that protecting a network from a malicious equipment depends on using other vendors that are not as risky, the NCSC said the risk of both Huawei and ZTE was too much. Huawei agreed some years ago to set up a centre where its components can be broken down and inspected. "Adding in new equipment and services from another Chinese supplier would render our existing mitigations ineffective".

The NCSC said it was concerned over new Chinese laws which it claimed gave Beijing "wide-ranging powers of compulsion" that could force companies to infiltrate or sabotage telecommunications infrastructure. The US government has put sanction over Iran and North Korea.

A five-year federal investigation found last year that ZTE had conspired to evade USA embargoes by buying US components, incorporating them into ZTE equipment and illegally shipping them to Iran.

China has unveiled its initial response to the tariffs, subjecting 128 U.S. goods to new import taxes upon entrance to the Asian economic powerhouse.

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