ZTE Banned From Using Hardware & Software from US Companies for 7 Years

ZTE Banned From Using Hardware & Software from US Companies for 7 Years

ZTE Banned From Using Hardware & Software from US Companies for 7 Years

USA authorities issued an order today barring USA exports of sensitive technology to Chinese telecom giant ZTE because of false statements made during an investigation into its illegal sale of goods to Iran and North Korea. Some might also be a bit surprised about Levy's actions, though when you consider the United Kingdom is trying to brown-nose its way into favour with the U.S. government ahead of Brexit isolation, the two announcements coinciding makes much more sense.

LONDON-U.S. and British officials both issued warnings over giant Chinese telecommunications-equipment ZTE Corp. on Monday, signaling sharply escalating Western scrutiny of the sector.

The FT's report notes that Levy's letter also cites a recent settlement between ZTE and U.S. officials, in which the Chinese firm agreed to pay a $1.2bn fines for violating USA sanctions on North Korea and Iran. Four senior managers and 35 members of staff were supposed to either be shown the door or had their bonuses removed, though the firm apparently paid the full amount to the nefarious employees further infuriating Ross. Now, it seems that ZTE will have to resort to companies like MediaTek for SoCs to use in its handsets. With the ban, none of the carriers are allowed to sell the ZTE smartphones. Acacia Communications Inc, which got 30 percent of its total 2017 revenue from ZTE, tumbled 35 percent, hitting a near two-year low.

Douglas Jacobson, an exports control lawyer who represents suppliers to ZTE, called the ban highly unusual and said it would severely affect the company. ZTE has relied heavily on the Dolby Atmos brand as a selling point of its smartphones, boasting that the devices' Dolby-branded speakers are among the best available.

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It has now come out that ZTE did not follow through on these actions. As part of the initial agreement, ZTE was allowed to continue to work with USA companies, assuming it adhered to the rules laid out in the agreement.

"ZTE misled the Department of Commerce.Instead of reprimanding ZTE staff and senior management, ZTE rewarded them.This egregious behaviour can not be ignored", Ross said.

Allowing Huawei, ZTE, and other related entities access to USA government communications would be inviting Chinese surveillance into all aspects of our lives.

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