U.S. lifts ban on suppliers selling to China's ZTE
U.S. lifts ban on suppliers selling to China's ZTE
ZTE Corp is seen on its building in Beijing China
15 July, 2018, 11:44
The settlement also included a $1 billion penalty that ZTE paid to the U.S. Treasury in June.
The US Commerce Department yesterday said it would continue to monitor the company to prevent further violations of US sanctions on Iran and North Korea.
Led by Senator Marco Rubio, the letter strongly urges the committee to include the "Cotton-Van Hollen-Schumer-Rubio Amendment" in the final version of the NDAA bill, which would undo the lenient and forgiving deal the Trump made with China to protect the telecom giant, reportedly as a direct favor to Xi Jinping.
"The substantial decrease in results was mainly due to operating losses and provision for losses resulting from the suspension of the major operating activities", ZTE said in the exchange filing.
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And the Trump administration has yet to resolve other issues in its trade war with China. ZTE pleaded guilty past year over the sanctions violations. Because ZTE relies on USA suppliers to make its smartphones.
The senators not only requests that the penalties be reinstated, but that the US henceforth prohibit all government and military personnel from "using or procuring equipment from, or entering into contracts with ZTE or Huawei", because of the potential espionage threat which the companies pose.
ZTE paid $892 million in penalties to the United States a year ago in connection with the 2017 settlement and guilty plea.
ZTE also agreed to bring in an American monitoring team and overhaul its top management as part of the deal.
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On Thursday, ZTE's Hong Kong shares surged some 25 percent after Reuters broke news the United States had signed an escrow agreement that paved the way for ZTE to deposit the $400 million.
Shares of US suppliers Acacia Communications and Lumentum Holdings rose more than 3 percent on the news before ending less than 1 percent higher.
It will now operate with a 10-year suspended ban hanging over its head, which the United States can activate if it finds new violations.
ZTE are now faced with a ten year suspended ban on sourcing any USA parts or products.
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