US Hit Chinese ZTE with 7-year ban for sanctions breach
The US Department of Commerce has banned the export of US companies to the leading Chinese manufacturer of telecommunication products ZTE. The embargo is for a seven-year term and is due to the company’s breach of sanctions.
Last year, ZTE, one of the leading importers in the United States, found guilty in a Texas court for violating sanctions against Iran. The Chinese wanted to bring illegal US products and technologies into the country and had to pay $890 million in fines and penalties.
Under the agreement, ZTE’s bosses had to fire four senior officials and punish another 35. The lack of penalties for the group of 35 employees who remained in the company has led to the current decision. Later, however, ZTE even paid bonuses to employees who have committed illegal activities, has not issued any documents of reprimand, and has lied to US authorities about their practices.
This restriction will have a negative impact on ZTE’s business. ZTE, whose Hong Kong and Shenzhen shares were suspended from trade on Tuesday, said in a statement it was assessing the implications of the U.S. decision and was communicating with “relevant parties”.
This is complemented by tensions between the US and China in terms of trade between the two largest economies in the world. President Donald Trump threatened to impose $150 billion of Chinese goods on allegedly infringing intellectual property rights, while Beijing promised to respond with appropriate measures.
Particularly damaging, Google’s mobile services including the Google Play App Store are likely to be covered by the ban even though the Android operating system is free, said Richard Windsor, an independent analyst at Radio Free Mobile.
“I think that there is a risk that ZTE loses all of its non-Chinese Android business,” he said. “In almost every region outside of China, it is almost impossible to sell an Android handset that does not have Google Play installed.” Google declined to comment. Post from: GizBrain. Source: Reutershttp://szlifestyle.com/sz/2018/04/18/us-hit-chinese-zte-with-7-year-ban-for-sanctions-breach/https://i2.wp.com/szlifestyle.com/sz/wp-content/uploads/2018/04/zte-logo.jpg?fit=1000%2C500https://i2.wp.com/szlifestyle.com/sz/wp-content/uploads/2018/04/zte-logo.jpg?resize=180%2C150TECH NEWSZTEChina,smartphone,ZTEThe US Department of Commerce has banned the export of US companies to the leading Chinese manufacturer of telecommunication products ZTE. The embargo is for a seven-year term and is due to the company's breach of sanctions. Last year, ZTE, one of the leading importers in the United States, found...Richard D.Richard Deendeen@szlifestyle.comContributorRichard Deen is a writer at szlifestyle. What can I say I love gadgets!szlifestyle.com Tech News, Life Style, Reviews, Videos!