US Cuts off ZTE From American Tech Suppliers

Stefan Mileschin · 19th April 2018, 09:56

Yesterday, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has announced the activation of a denial order against ZTE, banning the company from US technologies covered under Export Administration Regulations (EAR).

The ban follows an investigation and follow-up guilty-plea in March 2017 that ended with a civil and criminal penalty imposed on ZTE for illegally shipping telecommunications equipment to Iran and North Korea. On top of the $892M monetary penalty, the settlement agreement put ZTE on "probation", with the company agreeing to forfeit their export privileges for seven years and paying the remaining $300M of the original $1.19B fine in case of a breach or further misconduct.

The Department of Commerce has now determined that ZTE has breached the settlement agreement by giving false statements and failing to enact disciplinary actions to parties originally identified as responsible for engaging in the illegal conduct. Instead of reprimanding the employees, the company is stated to have rewarded them with full bonuses.

https://www.anandtech.com/show/12657/doc-zte-denial

19th April 2018, 09:56	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 148,597	US Cuts off ZTE From American Tech Suppliers Yesterday, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has announced the activation of a denial order against ZTE, banning the company from US technologies covered under Export Administration Regulations (EAR). The ban follows an investigation and follow-up guilty-plea in March 2017 that ended with a civil and criminal penalty imposed on ZTE for illegally shipping telecommunications equipment to Iran and North Korea. On top of the $892M monetary penalty, the settlement agreement put ZTE on "probation", with the company agreeing to forfeit their export privileges for seven years and paying the remaining $300M of the original $1.19B fine in case of a breach or further misconduct. The Department of Commerce has now determined that ZTE has breached the settlement agreement by giving false statements and failing to enact disciplinary actions to parties originally identified as responsible for engaging in the illegal conduct. Instead of reprimanding the employees, the company is stated to have rewarded them with full bonuses. https://www.anandtech.com/show/12657/doc-zte-denial

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