US tackles Chinese smartphone maker
THE commerce Department bans US companies from selling components to ZTE amid accusations that the chinese telecom giant lied to the US, according to www.cnet.com.
The US just handed down more penalties against a chinese telecommunications giant. And no, this isn’t about Huawei.
The commerce Department has imposed a “denial of export privileges” against ZTE, which translates to a ban on US companies selling any products and services to the china-based company. The ban lasts for seven years and comes into effect after ZTE allegedly violated the terms of a 2017 settlement, officials from the commerce Department’s Bureau of Industry and Security said monday in a conference call.
The ban, which could mean US players like Qualcomm and Dolby can’t sell their components to ZTE for phones, comes after ZTE pleaded guilty in march 2017 for illegally shipping US equipment to Iran and North Korea and agreed to pay up to $1.2bn in penalties. Part of the settlement required ZTE to take actions against employees who took part in the violations.
The commerce Department said monday that ZTE officials lied about reprimanding the employees, and even gave some of them full bonuses.
“Instead of reprimanding ZTE staff and senior management, ZTE rewarded them,” commerce Secretary Wilbur Ross said in a statement. “This egregious behavior cannot be ignored,”
The action comes amid mounting pressure on chinese telecommunications companies and a broader escalation of tariffs from both the US and china.