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: BJP releases second list of 82 candidates for Karnataka elections
More news: John Stamos welcomes first child with Caitlin McHugh
More news: Premier League outright odds: Liverpool & Man United favourites to stop Man City

"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

  • Musk insists Tesla does not need more capital

    Musk insists Tesla does not need more capital

    In other news, VP Eric Branderiz sold 801 shares of the stock in a transaction that occurred on Wednesday, January 24th. Finally, Coldstream Capital Management Inc. raised its stake in shares of Tesla by 1.4% in the fourth quarter.
    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 .

    Dangerous South Carolina prison secured after 'mass casualty incident,' officials say

    Seven inmates were killed and 17 more were injured during a "mass casualty incident" at a maximum security prison in SC . The South Carolina Law Enforcement Division and the Lee County Sheriff's Office are also responding.
  • 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.
    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.
    Xiaomi Mi 6X Coming On April 25, Official Render Available

    Xiaomi Mi 6X Coming On April 25, Official Render Available

    With the discontinuation of Mi A1 smartphone, the company seems to have giving hints at the arrival of the new Mi A2 in India. The phone has Android Oreo, topped with JOY UI, which is a custom launcher that shares some of its apps with Xiaomi's MIUI.
  • 'I Am Gay' Goes Viral After Chinese Site Weibo Censors LGBT Content

    'I Am Gay' Goes Viral After Chinese Site Weibo Censors LGBT Content

    In the post, the author wondered why China, as the world's second-largest economy, "can't be inclusive of two sexualities". On Monday it was back online and thanking supporters, saying: "Only by speaking up can we affect change".
    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.
    Nationwide Outage Shuts Down Woolworths

    Nationwide Outage Shuts Down Woolworths

    Registers temporarily shut down at a number of Woolworths stores across the nation due to a major technical outage this afternoon. Woolworths stores across the country have had to shut down registers and are unable to make sales.
  • Destiny's Child reunites at Coachella

    Destiny's Child reunites at Coachella

    While she was performing with Kelly Rowland and Michelle Williams , she had a hand on to the strap of her top to prevent an embarrassing nip-slip.

    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.
    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.