Published: Tue, April 17, 2018
Industry | By Johnnie Johnson

ZTE chairman appeals for calm amid USA parts ban 'crisis'

ZTE chairman appeals for calm amid USA parts ban 'crisis'

The Commerce Department determined ZTE, which was previously fined for shipping telecommunication equipment to Iran and North Korea, subsequently paid full bonuses to employees who engaged in the illegal conduct, failed to issue letters of reprimand and lied about the practices to USA authorities, the department said.

As part of the agreement, Shenzhen-based ZTE promised to dismiss four senior employees and discipline 35 others by either reducing their bonuses or reprimanding them, senior USA officials told Reuters.

The US government banned sales by American companies to China's ZTE Corp to punish the Chinese telco equipment maker for paying full bonuses to employees who engaged in the illegal sales of equipment to Iran, for failing to issue letters of reprimand to those employees, and then lying about it to US authorities.

ZTE and Huawei's alleged ties to the Chinese government were also the subject of a U.S. congressional report in 2012 that focused on the equipment they make for telecommunications networks.

The move, first reported by Reuters, comes at a time when the two countries have threatened each other with tens of billions of dollars in tariffs in recent weeks, fanning worries of a full blown trade war that threatens global supply chains as well as business investment plans.

Justin Gaethje Promises Five More Unmissable Fights In His MMA Career
I'm ready to go, and gold is next. "I was training, I knew I could be called at short notice". Poirier added: "This guy [Gaethje] would have died in here if Herb Dean hadn't stopped it".

The West warned telecoms operators not to use ZTE equipment because its state ownership raised security fears.

ZTE, whose Hong Kong and Shenzhen shares were suspended from trade on Tuesday, said in a statement it was assessing the implications of the USA decision and was communicating with "relevant parties".

Having suffered a loss of 767.8 million Chinese yuan ($122 million) in 2016, ZTE bounced back with a net profit of more than RMB6.7 billion ($1.1 billion) past year, with sales up 7.5%, to RMB108.8 billion ($17.3 billion).

It is playing to concerns that the continuing trade tension between the USA and China could turn into a full-blown trade war, which would be damaging to the United States economy.

China's Ministry of Commerce (MOC) said in a statement released on its official website that ZTE has conducted investment and trade cooperation with hundreds of enterprises in the USA and created thousands of jobs in the country.

Sega reveals Mega Drive Mini console
For those unfamiliar, AtGames is a company known for manufacturing a range of "flashback" consoles, including the Genesis. Sega Ages is the label Sega give its downloadable back catalogue.

The NCSC said it would be "impossible" to manage risks to the telecommunications sector if ZTE equipment was deployed at scale and that using ZTE equipment and services would have a "long term negative effect" on the security of the UK.

Yesterday, the Chinese firm was also blacklisted by the UK's National Cyber Security Centre (NCSC).

ZTE's smartphones use microchips from Qualcomm and glass from Corning. ZTE has purchased chips from Qualcomm Inc.

The penalty is steep, given that U.S. companies are believed to provide more than a quarter of the components used in ZTE telecom equipment and mobile devices.

Shares of Finisar Corp. ZTE already sells both its branded and white-label smartphones via mobile carriers AT&T and Verizon in the US.

Speculation builds about possible Scalise bid for House Speaker job
Our sources say that could pull an already divided conference even further apart. All the analysts are saying you're going to have a blue wave.

Like this: