White House Bans US Firms From Selling Parts To China Telecom Giant ZTE

While it's becoming increasingly clear that the US and China aren't trying to work out a "deal" on trade like Larry Kudlow and other members of the Trump administration have suggested - only to meet with denials from the Chinese - the White House isn't letting up on the pressure, Reuters reported.

To wit, the Trump administration has banned American companies from selling components to Chinese telecom-equipment manufacturer Zhongxing Telecommunications Equipment (ZTE) Corp. after accusing the company of lying during a settlement negotiation, according to Bloomberg.

Specifically, the Department of Commerce determined that ZTE had made false statements to the Bureau of Industry and Security during 2016 settlement negotiations and during its 2017 probationary period.

The company pleaded guilty last year in federal court in Texas for conspiring to violate US sanctions by illegally shipping US goods and technology to Iran.

ZTE paid nearly $900 million in fines and penalties, and an additional $300 million that could be imposed in the future.

The company had promised, as part of the settlement, to fire four senior employees and punish 35 others by either reducing bonuses or reprimanding them, Commerce Department officials told Reuters.

But the company admitted that, as of March, it had fired the four senior employees, but had not disciplined the 35 more-junior employees.

The punishment comes shortly after Trump blocked Broadcom's takeover of Qualcomm on national security grounds. The US is fighting to safeguard its technology as companies build the country's 5G data network. Treasury Department officials had expressed concerns about Qualcomm's technology falling into Chinese hands.

Shares of several ZTE customers, including Acadia and Oclaro, saw their shares plunge 15% and 25%, respectively, in early trade after the open. 

ZTE

Comments

LawsofPhysics Mon, 04/16/2018 - 09:17 Permalink

...but continues to force more taxation to support the MIC and keep weapons flowing to Syria...

 

 

See the problem yet DEBT/TAX slave?

 

LOL!!!

 

"Full Faith and Credit"

same as it ever was!

ldd LawsofPhysics Mon, 04/16/2018 - 23:07 Permalink

the world is really a collaboration of interest groups and always has been. these groups sometimes work together and sometimes compete against each other but the ultimate goal continues unimpeded.

in the main, the reason we are where we are is because there are the goals of a number of groups that think in the short term in a somewhat localized way and groups that think in the longer term in a more globalized way and any disturbances in this matrix are hiccups and summarily dealt with. in effect we are the energy source to power these goals. they allow us to have a life and offer trinkets to keep us happy. there will be waste and much corruption as no system is perfect but they have been working towards these goals for a long time. however, we now stand at a juncture where the manifestation is becoming unstable due to its sheer size which is evident in the utter ridiculousness of some of the antics visible on a daily basis. the sheer fraud and degradation in society is so complete that it is breaking down yet because of so much power concentrated in so few hands the system continues albeit in a more visible way.

the internet is the eye opener and what we do from this point forward will cement the future direction and outcome.

 

In reply to by LawsofPhysics

keep the basta… TheSilentMajority Mon, 04/16/2018 - 09:27 Permalink

Ho yee fuk sum ting wong

when the boat load of american rotting stinking garbage which was refused at the wharf by China gets back to the USA.

Then when american shitload of garbage accumulates day by day.  Watch for it. No one else can take it because they dont have the expensive equipment to process it, neither can america cope with its own garbage. 

This is not being mentioned.

In reply to by TheSilentMajority

ldd keep the basta… Mon, 04/16/2018 - 22:43 Permalink

i can not remember the last time i took the garbage out. everything here gets recycled, which is free, i just need to put it (it is mostly wrappers/packaging) out. the only other thing i recycle is food waste like fruit/vegetable peels, etc.

we should be able to recycle most things and most things should be made from recycled material. we should only need a trickle of new materials. if any country is producing too much garbage then it only signifies how wasteful the country is and if you have read j. diamond (whose work is seminal) you will know why places/societies disappear.

recently watched a japanese film "Survival Family" based on a solar flare that knocked out the power grid. it showed how everyone abandoned the city after supplies ran out while those in the country were relatively unaffected. people with basic supplies and equipment like bikes fared much much better. it lasted 4 months before the power grid was returned. thought it was a very good interpretation of what will happen in any (in a country that is civil) event.

In reply to by keep the basta…

kanoli Mon, 04/16/2018 - 09:23 Permalink

Since when does the US govt have jurisdiction to tell Chinese firms what they can or cannot sell to Iran?  American hubris has peaked and is begging for a humiliating ending.

GreatUncle Disgruntled Goat Mon, 04/16/2018 - 10:48 Permalink

China is an evolving technological nation now ... i.e. we built their production machine and paid for it and now they get to use it to develop better technology going forward if they cannot copy or purchase it. Bit like selling somebody a hammer/screwdriver they can now assemble a higher level of technology with the tools.

The restriction will drive them to use that hammer and screwdriver to make their own technology. China evolving this way now ... look at the reflection in the mirror! ... how the hell is the west going to drive the excessive cost predominantly of labor down to compete in the global market? $10 a day wages? Slavery is the only way.

The last part is the real challenge for the US whilst carrying a $21T and growing debt on its back.

If anything I see the driving of the labor cost down, bursts all the bubbles relying on this because there will not be a sufficiently high enough earnings to support the internally high price. FUCKED ... just like the rest of the west.

If right and they must realise this ... the last gasp option, trade war starts it is total global hegemony, the monopole and failing that in the final act the opposition has to be destroyed.

Nothing else for it or the economic bubble gets it! WE ARE WELL ON THE WAY and you are all invited isn't that kind?

In reply to by Disgruntled Goat

To Hell In A H… kanoli Mon, 04/16/2018 - 12:40 Permalink

Since when does the US govt have jurisdiction to tell Chinese firms what they can or cannot sell to Iran?  American hubris......

For a long fucking time. Where have you been? Take sanctions for example. Companies get the memo and listen to what Uncle scam says. When companies avoided doing business in any USSA territory, the Yanks moved the goal posts and changed the rules, by claiming if any foreign company breaks the sanction conducts any of the financial transactions inside the USSA. That company would have broken USSA law.

IE: All BIS settlements go through USSA servers, then said company due to gross USSA over-reach, is deemed to have broken USSA law and is now subject to USSA law. Hence why Iran and Turkey was swapping Gold for oil and Uncle scam was powerless, hence the next round of sanctions had a whole host of incentives for Iran, not to trade in gold at all.

What TPTB fear the most is disintermediation from financial control. A non-western alternative to BIS and SWIFT, would have the UK, France and Uncle Scam literally giving birth to kittens. This is what they fear the most, alongside a multi-polar world.

In reply to by kanoli

holy_crane artvandalai Mon, 04/16/2018 - 12:41 Permalink

Fixing your own countries first! The Chinese people don't need your unsolicited advice what kind of political system of their choice. Moreover why not they strongly support a working system that has been performing excellently over these decades? Just look at the chaotic world around. What not to cherish from such an effective and stable Chinese political system? And it is a system that is able to carry forward 1.4 billion people. Just look at India, what to learn from that? :-) lol

In reply to by artvandalai