United States companies banned from selling components to ZTE

United States companies banned from selling components to ZTE

The company can resume purchasing these components from the US after seven years. Commerce said the individuals were identified by a trail of internal memos within ZTE discussing how the company might evade USA restrictions on shipping to Iran. It also paid $890 million in fines.

This warning follows similar action from the USA government, which has long-prohibited American telecoms firms from buying network equip from Chinese firm Huawei, and last month went so far as to warn USA citizens not to use smartphones from the Chinese companies Huawei and ZTE.

The penalty is steep, given that US companies are believed to provide more than a quarter of the components used in ZTE telecom equipment and mobile devices. While the company went ahead with the launch, there is no announcement about the AT&T partnership.

As part of the agreement, Shenzhen-based ZTE Corp promised to dismiss four senior employees and discipline 35 others by either reducing their bonuses or reprimanding them, senior Commerce Department officials told Reuters. Acacia Communications Inc, which got 30 percent of its total 2017 revenue from ZTE, tumbled 35 percent, hitting a near two-year low. The company will now be banned from incorporating any commodity, software or technology from USA companies in any of its products.

More news: 200 million eggs recalled due to potential salmonella contamination
More news: Nationwide Telegram Ban Begins in Russia - Kremlin Switches to ICQ
More news: Xiaomi Mi 6X Coming On April 25, Official Render Available

"ZTE made false statements to the US Government when they were originally caught and.made false statements during the reprieve it was given, and made false statements again during its probation", Commerce Secretary Wilbur Ross said in a statement.

On top of the false statements regarding U.S. components, Ross also claims ZTE did not live up to promises when it came to firing or disciplining employees who were directly involved with the initial complaint. It might also be the first steps through the bureaucratic box ticking mission to officially ban ZTE. After the USA placed export restrictions on ZTE in 2016 for Iran sanctions violations, the China's Ministry of Commerce and Foreign Ministry criticized the decision.

A few years back, both Huawei and ZTE came under scrutiny after the U.S government raised concerns over the national security. While a few reports say, the company might actually sell Android-powered devices outside of the United States as it comes with open source software.

Allowing Huawei, ZTE, and other related entities access to US government communications would be inviting Chinese surveillance into all aspects of our lives.

Related Articles

  • Samsung Galaxy Note 9 Codenamed 'Crown' All Set to Steal the Thunder

    Samsung Galaxy Note 9 Codenamed 'Crown' All Set to Steal the Thunder

    The smartphone is still in the stage of development, but the leaks have started pouring in about this flagship smartphone. While it's still not confirmed, Samsung is likely to launch the Galaxy Note 9 as early as July or August.
    Salah hits 40 in easy Liverpool win, Southampton suffer Chelsea collapse

    Salah hits 40 in easy Liverpool win, Southampton suffer Chelsea collapse

    The goal also saw the Egypt worldwide reach the 40-goal mark across all competitions; a feat that he achieved in just 45 games. Victory for Liverpool was another blow to Chelsea's hopes of Champions League football next season.
    Seven killed, 17 injured in SC  prison riot

    Seven killed, 17 injured in SC prison riot

    Several emergency crews responded to the Lee Correctional Institution in Bishopville where seven inmates were killed. "They don't have guns", Logan said by phone as he went to a Florence hospital to finish identifying the dead.
  • Sega Ages for Switch Series Could Include Games for Saturn and Dreamcast

    Sega Ages for Switch Series Could Include Games for Saturn and Dreamcast

    Over the weekend Sega announced that a range of Sega Ages titles would be coming to the Switch, all of them from the Megadrive. No word on an official price point yet, but expect more details to emerge as we approach a firm release date in the summer.
    John Stamos welcomes first child with Caitlin McHugh

    John Stamos welcomes first child with Caitlin McHugh

    The message accompanied a black-and-white photo of the baby snoozing on his dad's chest with his tiny hand on Stamos' finger. The 32-year-old McHugh posted the first public photo of her baby bump on Instagram in January.
    Premier League outright odds: Liverpool & Man United favourites to stop Man City

    Premier League outright odds: Liverpool & Man United favourites to stop Man City

    They've also finished the job calmly on the final day of the season, beating West Ham 2-0 at the Etihad in 2014. The epic speech was short, but certainly epic: 'It's been a f****** long journey.
  • Man Utd at their best haven't come close to City

    West Brom , to their credit, also kept probing forward but they lacked the class required to really open United up at the back. In sealing the league at this stage, City matched the record for the earliest title win - held by United since 2001.
    Theresa May faces Parliament over Syria strikes

    Theresa May faces Parliament over Syria strikes

    David Cameron, who was prime minister in 2013, tweeted on Saturday: "As we have seen in the past, inaction has its consequences". French President Emmanuel Macron said the strikes had been limited so far to Syria's chemical weapons facilities.
    Fear the Walking Dead Is Better Than Ever with Morgan Jones

    Fear the Walking Dead Is Better Than Ever with Morgan Jones

    In Sunday night's finale to The Walking Dead season 8 , the All-Out War between the survivors and The Saviors came to end. Jesus then offers Morgan a suggestion of using the tiresome end of his staff on the living so as not to kill them.
  • Broncos to release CJ Anderson

    Broncos to release CJ Anderson

    Eric Studesville, who was recently named the Dolphins running backs coach, was Anderson's position coach in Denver from 2013-2016. According to Vic Lombardi of Altitude TV, the Broncos have released the veteran running back.
    United Nations  rejects Russian attempt to condemn U.S.  'aggresion'

    United Nations rejects Russian attempt to condemn U.S. 'aggresion'

    President Donald Trump said a US-led missile attack on Syria's chemical weapons program was "perfectly carried out". What happens next, she said, is up to Assad and his Russian and Iranian allies.
    Mecca Masjid blast: NIA to take action after examining court's verdict

    Mecca Masjid blast: NIA to take action after examining court's verdict

    The firebrand MP alleged that the Modi government did not even appeal against the bail given to the accused earlier. Self-proclaimed monk Aseemanand was also an accused in the 2007 Ajmer Dargah blast but was acquitted in the case .