United States hits ZTE with huge ban that has ominous Android implications

17 April, 2018, 10:44 | Author: Darnell Patrick
  • U.S. companies banned from selling components to ZTE		
		
	Brian Heater

       @	   
   	7 hours

It would suspend a seven-year product ban preventing ZTE from exporting components and parts made in the states as long as it adhered to the signed agreements, and didn't break the rules.

The Chinese company, which sells smartphones in the United States, paid $US890 million ($1.145 billion) in fines and penalties, with an additional penalty of $US300 million that could be imposed. The DOC, however, contends that ZTE failed to significantly penalize those employees.

Commerce said ZTE's actions "demonstrate a pattern of deception, false statements, and repeated violations" and that "ZTE still can not be relied upon to make truthful statements, even in the course of dealings with US law enforcement agencies, and even with the prospect of the imposition of a $300 million penalty and/or a seven-year denial order".

ZTE paid $890 million in fines and penalties and agreed to take other steps but has not followed through, the commerce department said.

In addition to paying back a bunch of cash, ZTE promised the USA government that it would formally reprimand its executives and deny them bonuses for executing this illegal activity. "This egregious behaviour can not be ignored", Ross added.

But the bureau found the reasons behind the failure to comply are "red herrings to ... concerns that the company has repeatedly made false statements to the US government - as the company has now repeatedly admitted". That ban stops U.S. companies from supplying ZTE with components, which could be devastating to a company that possibly gets between 25 and 30% of its parts from the US. Qualcomm is a US-based company, meaning ZTE phones will not be able to use Snapdragon processors.


The ZTE news drove down stocks in companies that stood to lose business.

Acacia Communications (ACIA) lost more than a third of its value, cratering almost 35% to near 26 while Oclaro (OCLR) plummeted 17% to 7.80 in morning trades on the stock market today. This order was issued due to a breach of a settlement between ZTE and the USA government after ZTE was found violating Iran and North Korean sanctions.

"We can't trust what they are telling us is truthful", the official continued.

In a letter sent to telecoms firms, ZTE itself and regulator Ofcom, Ian Levy, director of the National Cyber Security Centre (NCSC), warned the use of ZTE equipment or services within existing infrastructure "would present risk to United Kingdom national security that could not be mitigated effectively or practicably". (NYSE:T), T-Mobile US Inc.

According to the press release, this denial order against ZTE is a regulatory action and has nothing to do with the ongoing trade war between the U.S.A and China.

ZTE was similarly the subject of a 2012 investigation by the FBI and US Commerce Department after allegedly setting up a network of sub-companies to illegally export Microsoft, HP, Oracle, Dell, Cisco, and Symantec products to Iran.

Recommended:

  • Sirens will sound twice Thursday for statewide tornado drill

    Sirens will sound twice Thursday for statewide tornado drill

    Skies will turn partly cloudy Sunday night, with a low around 35 and east southeast wind of 6 to 10 miles per hour . All modes of severe weather will be possible: large hail, damaging winds, a few tornadoes and flash flooding.
    Luis Severino may have tipped his pitches vs. Red Sox Tuesday

    Luis Severino may have tipped his pitches vs. Red Sox Tuesday

    Facing Sale for the first time, Major League Baseball strikeout leader Giancarlo Stanton added a pair of Ks to his total (22). Last night they were almost flawless , combining to go 8-for-9 with eight runs, nine RBIs, four walks and a sacrifice fly.
    Mechanic suffers broken leg after being hit by auto

    Mechanic suffers broken leg after being hit by auto

    Ferrari announced that it is now investigating as to why Raikkonen was given a green light when one wheel was yet to be changed. Hamilton had his work cut out starting from ninth, and managed to achieve the podium finish he would have been hoping for.
  • Erdogan says Turkey anxious  about 'wrestling' of world powers over Syria

    Erdogan says Turkey anxious about 'wrestling' of world powers over Syria

    He tweeted that Russian Federation should get ready for a strike on Syria after Moscow reportedly vowed to shoot down missiles. On January 20, Turkey, together with the Free Syrian Army opposition forces, launched Operation Olive Branch in Afrin.
    Gov. Brown will deploy National Guard, but not for immigration enforcement

    Gov. Brown will deploy National Guard, but not for immigration enforcement

    It will not be a assignment to locate women and children or detain persons escaping violence and trying a better existence. The border patrol has requested more technology to remotely monitor the border and search for tunnels under it.
    Saudi air defence forces intercept missile over Najran - statement

    Saudi air defence forces intercept missile over Najran - statement

    The coalition accuses the Houthis of being armed and supported by Iran - charges the group and Tehran deny. Yemen lies along one of the main global oil chokepoints in the Red Sea.
  • Simple tips if you still need to file taxes

    Simple tips if you still need to file taxes

    Supreme Court ruled the tax unconstitutional the following year, because it didn't take into account the population of each state. But filing for an extension can be an option if you're running behind, especially for some of those more complex cases.
    South Africa's Winnie Mandela laid to rest

    South Africa's Winnie Mandela laid to rest

    The casket, draped in a South African flag, was taken to the private cemetery in a motorcade escorted by members of the military. I say "fight" because the battle for our freedom was not some polite picnic at which you arrived armed with your best behaviour.
    This Is The Impact Of Gender Wage Gap

    This Is The Impact Of Gender Wage Gap

    Median wages of MS women who are mothers fall below the overall median, earning $0.71 on the dollar compared to fathers. Wyoming has the largest gap between men and women at 36 percent with NY and DE taking the top spots at 11 percent.
  • Judge hints Trump won't see Cohen papers

    Judge hints Trump won't see Cohen papers

    Cohen arranged for the payment to be made and Trump told reporters last week he had no knowledge of it. She then rolled a clip of Hannity offering Cohen a platform to say he'd never been to Prague.
    Gmail working on self-expiring emails

    Gmail working on self-expiring emails

    The redesigned Gmail will be available to its G Suite customers and general users as an early access program in coming few weeks. The message behind the link disappears after some time, but this doesn't mean that the intermediate email also disappears.
    Trump asks advisors to study USA  re-entering trans-Pacific trade deal negotiations

    Trump asks advisors to study USA re-entering trans-Pacific trade deal negotiations

    But it's just that kind of trade deal with Pacific countries that would better confront China and its unfair trade practices, Sen. The announcement was welcomed by lawmakers from some farming states. "We're going to raise it up to 15 percent".


Popular

FBI Sought Trump 'Access Hollywood' Tape Records in Michael Cohen Raid
Sources familiar with the search warrants tell CBS News the documents mentioned President Trump's name several times .... Outside court, he said: "We have every reason to believe that some of the documents seized relate to my client".

Nevada Sheriff: Art Radio Show Host Art Bell Dead at 72
Eccentric radio host Art Bell passed away at his Pahrump home Friday, according to the Nye County Sherriff's Office. In July 2016 Bell had a health scare, spending five days in a Las Vegas hospital, according to the show's website.

Stanley Cup Playoffs Predictions: Western Conferance Frist Round
As has been repeated over and over since it was learned that the Flyers and Penguins would renew their rivalry in the postseason. Now.The Flyers' No. 1 unit, so dominating during the regular season, was a combined minus-11 and had just three shots.

Royal wedding: Meghan and Harry choose photographer with royal ties
TMZ report that she was accompanied by four bodyguards as she headed into the VFS Global UK Visa Application Centre on Thursday. That part of the guest list hasn't been publicly disclosed, but will include people the royal couple know personally.

Toys R Us is Properly Closing on April 24
Moorfields has been managing the administration of the bust company, after it was unable to pay a 15 million pound tax bill. Meanwhile, New Look and Carpetright have both announced plans to shut stores as part of restructuring plans.

UW research links brain injuries with dementia
They identified and cumulative effect, and found dementia risk rises with repeated episodes of brain injury. For example, one traumatic brain injury is associated with about a 22 percent increased risk of dementia.

Apple co-founder Steve Wozniak closes Facebook account amid data scandal
Wozniak also noted that Zuckerberg could fix these issues with Facebook but won't, adding that "personalities don't change". Wozniak's move comes in the midst of Facebook's deepest crisis, a data breach that has affected 87 million users globally.

Russian aluminium giant Rusal share price almost halves after U.S. sanctions
The share price of the company "RUSAL" on Monday morning fell more than 40 % on the Hong Kong stock exchange and by 46.9% in the Moscow exchange.

Uber to acquire Jump Bikes, an electric bike rental service
The deal signals the ride-hailing giant's intent to expand its focus beyond cars to other forms of transportation. Uber has announced its purchase of bike-sharing platform Jump, which offers users access to electric bikes.

Kim Jong Un will talk denuclearization with Trump, officials say
Till then Washington was yet to hear directly from Pyongyang on the invitation extended by Kim via South Korean intermediaries. North Korea's leader Kim Jong-Un mentioned future talks with the USA at a party meeting, state media reported on Tuesday.