Tuesday, 16 October, 2018


USA reveals ZTE settlement details, ban still in place

USA reveals ZTE settlement details, ban still in place USA reveals ZTE settlement details, ban still in place
Conrad Doyle | 13 June, 2018, 13:44

After it was exposed that ZTE violated US trade embargoes and directly lied to officials about the conduct, the Commerce Department banned USA exports to the company as punishment.

A woman passes by a ZTE building in Beijing, China shortly after President Donald Trump tweeted about possibly reversing a ban on the tech giant in May.

An amendment sponsored by Sens.

The Chinese company has been accused of violating USA sanctions by selling sensitive equipment to both North Korea and Iran.

The Shenzhen-based company appointed Shen Nan to lead the team, with two assistants, according to an internal memo seen by the South China Morning Post.

The motion was adopted late Monday night, only hours after the deal became public and less than a week after it was signed.

Senators plan to add a provision in the National Defense Authorization Act (NDAA), an annual defense policy bill they're expecting to pass this week, that will ban U.S. suppliers from selling to ZTE, reported The Wall Street Journal.

The vote follows a tumultuous few months for ZTE. The company had shut major operations last month after the U.S. activated a ban prohibiting it from buying American parts.

Earlier this year, United States officials banned ZTE from working with USA companies - a move brought on by revelations that the company shipped US-made parts to Iran and North Korea and then lied about giving company executives involved with the deals large bonuses.

The bipartisan amendment would reimpose penalties on ZTE for violating US sanctions against exporting to Iran and North Korea that the Trump administration sought to lift in exchange for the company paying a $1 billion fine and funding an in-house compliance team of USA officials.

The deal will involve ZTE paying a $1bn penalty and hiring a US-approved compliance team.

Lifting the ban wasn't a popular political move, however, and a bipartisan group of senators is working to reverse it. Tom Cotton of Arkansas, a conservative Republican, and Sen.

In February, U.S. intelligence officials warned Americans not to use smartphones made by ZTE or Huawei - another Chinese telecom company - as the communication technology could be compromised "to gain positions of power inside our telecommunication networks that provides the capacity to exert pressure or control over our telecommunications infrastructure".

Florida Republican Sen. Marco Rubio added that the amendment was "Great news!"

Senate Majority Leader Mitch McConnell (R., Ky.) said that passing the defense measure is at the top of his to-do list this week.

The authorization must pass both houses of Congress.

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