United States boycotts China telecom giant ZTE over Iran case

17 April, 2018, 20:20 | Author: Sergio Cook
  • Optical Stocks Under Pressure After US Bans Sales To ZTE

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.

But instead of punishing those involved, "ZTE paid full bonuses to employees that had engaged in illegal conduct, and failed to issue letters of reprimand", the Commerce Department said in a statement.

The latest NCSC warning about ZTE coincides with the announcement of a seven-year ban on USA companies selling products and services to ZTE due to its alleged failure to act against personnel who sold sensitive U.S. technology to Iran and North Korea, according to The Guardian.

"If the issue can not be solved smoothly and immediately, we think that ZTE will face tremendous disaster and would be forced to scale back on its smartphone business, not only in the USA, but also in other markets", said Strategy Analytics analyst Woody Oh.

The battle of the Chinese manufacturers against the United States continues, and in this new episode, ZTE is the one affected, since from now on it will not be able to use components of American companies for a minimum of seven years. It was fined $890 million and agreed to dismiss four members of senior staff, and to discipline 35 more.

ZTE halted trading of its shares in Hong Kong and Shenzhen on Tuesday following the announcement of the U.S. ban.

ZTE works with BT in a research partnership, but BT said that did not mean it would lead to a commercial deployment of its technology in the UK.

Chelsea comeback increases Saints' fears of drop as rivals win
If you don't have something in your heart, it's very hard to come back and win. It was hard for us to come back so we must be pleased by the desire we showed.

The company has set up a crisis management group in response to the ban, said a ZTE source, declining to be identified as the information was confidential.

For ZTE itself, the latest US action means one of the world's top makers of smartphones and communications gear will no longer be able to buy technology from American suppliers, including components central to its products.

The U.K.'s national Cyber Security Centre warns the telecommunication companies of the country that, "National risks from ZTE equipment and services can not be mitigated".

The sales ban came on the same day that it was revealed that the UK's National Cyber Security Centre (NCSC) has warned telecoms companies and other network operators of its "security concerns" with networking hardware made by Chinese vendor ZTE.

The action of the ban imposed by the USA on the ZTE corp. means that one of the world's top manufacturers of smart phones and communication gear will not be able to buy technology from American Supplies.

ZTE's main business is networking equipment where they are a major player alongside other mentionable companies such as Nokia, Ericsson, Huawei and Cisco. ZTE already sells both its branded and white-label smartphones via mobile carriers AT&T and Verizon in the US. It has relied on USA companies including Qualcomm Inc, Microsoft Corp and Intel Corp for some components.

Recommended:



Popular

Rebooting Japan-China economic dialogue
Asked by reporters on Monday to comment on the allegations, Fukuda said: "I will issue a comment today so please look at that". However, Kono warned there would be "no true improvement of Japan-China relations without stability in the East China Sea".

Comm Games Organisers Explain Botched Closing Ceremony
Seven was slammed by viewers for not showing any footage of the athletes of the games during the closing ceremony. Actually, wrecking a tradition that is so important, " Griggs said.

Former first lady Barbara Bush, 92, 'in failing health'
Mr McGrath did not provide any further information on the nature of her illness, but confirmed she is at her home in Houston . While we are aware of the Parkinson's-like disease impacting her husband and 41st President of the United States, George H.W.

Juve shouldn't be surprised by 'laughable' penalty - Chiellini
Ronaldo then stepped up and duly slotted the penalty past substitute goalkeeper Wojciech Szczesny with his team moving into the semi-finals 4-3 on aggregate.

Syria Must Declare All Chemical Weapons Stockpile to Continue Geneva Process
President Donald Trump "enforces" the red line and the U.S. will sustain the pressure on the war-torn nation, she said. A UN Security Council vote brought by Syria's ally, Russia, and condemning the US-led strikes was rejected.

Kylie Jenner Goes 'Mean Girls' for Coachella Weekend
According to the Daily Mail , Kylie Jenner is the only member of her family who has not been avoiding social media lately. Jenner posted a video on Snapchat while driving down a long road and added a special pink filter to the footage.

Ghazni District Retaken After Deadly Attack
Rahmani said the Taliban planted mines to stop reinforcements from coming to help the government forces fend off the attack. The attack occurred in Herat's Shindand district, said the district's governor, Shukrullah Shaker.

What we know about the Syria air strikes so far
It said three civilians were wounded in the Homs attacks but did not give a toll for Damascus or mention any combatant casualties. Raw video footage and images from Syria show missiles darting through the sky during the attack.

Trump backs # 039 marijuana &;# 039 & Says Legal Rights; Invoice, senator States
Gardner noted that Trump had stated during his campaign that he had supported states' rights to decide how to approach marijuana. White House Press Secretary Sarah Huckabee Sanders confirmed the conversation between Gardner and Trump.

The Scooter Libby Pardon
At trial, Libby claimed to have simply forgotten he actually learned about the identity from Cheney a month before he said he had. Adam Schiff, ranking member of the House intelligence committee, linked the pardoning to the Russian Federation investigation.