China's ZTE will take 'certain actions' against United States ban

by Leslie Wood April 27, 2018, 0:51
China's ZTE will take 'certain actions' against United States ban

The report notes that the USA authorities have been probing Huawei's alleged shipping of United States origin products to Iran and other countries in violation of U.S. export and sanctions law since at least 2016.

The Department of Justice (DOJ) is investigating Chinese phone-maker Huawei over whether it violated US sanctions against Iran, The Wall Street Journal reported on Wednesday.

While there is likely to be suspicion that any investigation is an attack on Huawei because it is a Chinese company, it should be noted that many companies, be they from the US or overseas, suffer serious penalties for breach of US Trade Sanctions, said Haswell of Pinsent Masons.

The ban will also impact the business of a number of U.S firms including Qualcomm, Dolby and Acacia Communications. Now, the Wall Street Journal reports the government is taking more direct action against the Chinese technology giant.

The U.S. Commerce Department's Bureau of Industry and Security earlier this month banned American companies from selling to ZTE for seven years, saying the Chinese company had broken a settlement agreement with repeated false statements. ZTE was accused of violating an agreement to punish employees involved in illegal shipment of U.S. goods to Iran. This includes any possible sanctions from the US, EU, and UN. The company is also the world's No. 3 maker of smartphones.

A foreign ministry spokeswoman, Hua Chunying, said Thursday that China opposes any country imposing unilateral sanctions based on its own law.

"China's position opposing nations using their own domestic laws to impose unilateral sanctions is consistent and clear", she told a daily news briefing.

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That is in stark contrast with ZTE, the Shenzhen-based telecommunications equipment maker that is both Huawei's competitor and comrade in the global technology race.

"A ban on Huawei could hurt them, but it won't kill the company, whereas ZTE is in survival mode [following the United States ban]", he said. Throw in the fact that ZTE continued to obstruct investigations during the probationary period, and it should come as no surprise that the Department of Commerce came down hard on the company.

With the development of internationalization, the company pledged to protect legitimate rights of shareholders and uphold responsibilities to hundreds of global clients, thousands of partners and suppliers and hundreds of millions of end users, Yin added.

In April 2017, lawmakers sent another letter to Commerce Secretary Wilbur Ross asking for F7 to be publicly identified and fully investigated.

The US forbade expert of communications technology to Iran as part of its sanction against certain regimes, including North Korea.

An export ban is also very likely on the table.

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