ZTE punished for violation of US sanctions regulations | banned purchase of US components

Officials from the U.S. Department of Commerce disclosed that U.S. companies were banned from selling components to Chinese telecommunications equipment manufacturer ZTE within the next seven years.

Tencent Technology News According to foreign media reports, US Department of Commerce officials revealed on Monday that because of violations of US sanctions, US companies were banned from selling components to Chinese telecom equipment manufacturer ZTE within the next seven years.

Reuters reported that ZTE pleaded guilty in the US federal court in Texas last March to admitting the sale of U.S. goods and technology to Iran in violation of sanctions. According to ZTE’s previous settlement with the US Treasury, the Ministry of Commerce, and the Ministry of Justice The agreement that the company agreed to pay a fine of 890 million U.S. dollars.

In addition, the U.S. Department of Commerce’s Bureau of Industry and Security’s 300 million U.S. dollar fine for ZTE can be suspended, depending on the monitoring and auditing results of ZTE’s implementation agreement in the next 7 years.

Officials of the US Department of Commerce stated that according to the agreement at that time, ZTE promised to dismiss 4 senior employees and punish 35 employees by reducing bonuses or penalties. However, ZTE admitted in March this year that the company only dismissed 4 senior employees. Employees, not punished or reduced the bonus of 35 employees.

In March 2016, the U.S. Department of Commerce imposed export restrictions on ZTE and prohibited U.S. component suppliers from exporting components, software, equipment, and other technical products to ZTE. This was because of a violation of U.S. export control policies against Iran.

The U.S. Department of Commerce again imposed export restrictions on ZTE, which means that the company’s international development will encounter significant obstacles.

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