U.S. bans American companies from selling to Chinese phone maker ZTE
The U.S. Department of Commerce has banned American companies from selling components to leading Chinese telecom equipment maker ZTE Corp for seven years for violating the terms of a sanctions violation case, U.S. officials said on Monday, APA reports quoting Reuters.
The U.S. action, first reported by Reuters, could be devastating to ZTE since American companies are estimated to provide 25 percent to 30 percent of the components used in ZTE’s equipment, which includes networking gear and smartphones.
The ban is the result of ZTE’s failure to comply with an agreement with the U.S. government after it pleaded guilty last year in federal court in Texas to conspiring to violate U.S. sanctions by illegally shipping U.S. goods and technology to Iran.
The Chinese company, which sells smartphones in the United States, paid $890 million in fines and penalties, with an additional penalty of $300 million that could be imposed.
“If the company is not able to resolve it, they may very well be put out of business by this. Many banks and companies even outside the U.S. are not going to want to deal with them,” said Eric Hirschhorn, a former U.S. Undersecretary of Commerce who was heavily involved in the case.
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. But the Chinese company admitted in March that while it had fired the four senior employees, it had not disciplined or reduced bonuses to the 35 others.
Related news releases
- 21.07.2018Ex-Colombian guerrillas sworn into Congress
- 21.07.2018Missouri boat accident kills 17, including nine from one family
- 21.07.2018U.S. urges strict U.N. sanctions until North Korea acts on denuclearization
- 20.07.2018Trump, Putin discussed Syria crisis, returning refugees: Pompeo
- 20.07.2018US: Mattis opposes bid to remove Turkey from F-35 program
- 20.07.2018Pompeo: Possible Trump-Putin meeting in Washington 'All to the Good'
- 20.07.2018Pompeo: Trump set up communications channel with Russia in Helsinki
- 20.07.2018At least 8 dead, 10 injured as tourist vessel capsizes in Missouri - UPDATED
- 20.07.2018At least 7 injured after Tornado hits Iowa factory
- 20.07.2018Trump slams EU over $5 billion fine on Google
- 20.07.2018US immigrant group rejects huge donation
- 20.07.2018Donald Trump invites Putin to the White House
- 19.07.2018Trump says China's currency dropping like a rock - UPDATED
- 19.07.2018Trump says EU officials want to negotiate trade deal in Washington visit
- 19.07.2018Trump says he holds Putin personally responsible for election meddling
- 18.07.2018Trump says Russia no longer targeting US
- 18.07.2018Trump asked eight times to meet Iran president at UN last year
- 18.07.2018Japan, EU sign free trade pact amid worries about Trump
- 18.07.2018Military aircraft crashed in Mexico
- 18.07.2018US Senate Democrats Demand Probe of Putin-Trump Summit
- 18.07.2018Trump says he, Putin discussed North Korea, curbing global nuclear weapons
- 18.07.2018Boeing CEO says Embraer deal offers thrifty suppliers more volume
- 18.07.2018Boy killed during protest in southern Venezuela: police
- 18.07.2018Trump tries to calm political storm over Putin summit, says he misspoke
- 18.07.2018Three teens shot, one critically, in U.S. state of North Carolina
- 17.07.2018Communist-run Cuba starts rolling out internet on mobile phones
- 17.07.2018US judge halts deportations of immigrant families
- 17.07.2018Flying 'lava bomb' injures 13 off coast of Hawaii's big island
- 17.07.2018U.S. State Department in talks with Turkey to sell Patriot system
- 17.07.2018Russian Student Arrested in Washington DC, Charged as Foreign Agent
- 16.07.2018Trump says U.S. must find ways to cooperate with Russia
- 16.07.2018Iran sues US for re-imposing sanctions
- 15.07.2018Trump says intends to run for president in 2020
- 15.07.201825 injured after bus overturns on Los Angeles freeway
- 14.07.2018UN General Assembly Reaches global deal on migration
- 14.07.2018UN Security Council imposes arms embargo on South Sudan
- 13.07.2018US indicts 12 Russian spies for 2016 election hacking
- 13.07.2018Department of State: The US strongly supports the Southern Gas Corridor project
- 13.07.2018Donald Trump: May presses case for US trade deal at dinner
- 12.07.2018Trump says ready to help some NATO states buy U.S. arms
- 17.04.2018U.S., Britain blame Russia for global cyber attack
- 17.04.2018Trump administration delays new sanctions on Russia: official
- 17.04.2018Syria says missiles fired at air base intercepted; Pentagon denies involvement
- 16.04.2018U.S. military chiefs to brief Congress on Syria behind closed doors
- 16.04.20187 inmates dead, 17 injured after hours of rioting at South Carolina prison
- 15.04.2018UN chief warns of full-blown military escalation over Syria attacks