U.S. Commerce Department slaps ZTE for breaking Iran trade embargo

[zMeul]

source: http://www.reuters.com/article/us-zte-usa-china-idUSKCN0W80AV

Quote

The restrictions will make it difficult for the company to acquire U.S. products by requiring ZTE's suppliers to apply for an export license before shipping any American-made equipment or parts to ZTE. According to a Commerce Department notice that will be published next week in the U.S. Federal Register, the license applications generally will be denied.

 

The restrictions will take effect Tuesday, Reuters has learned, and apply to any company worldwide that wants to ship American-made products to ZTE Corp in China. Those companies are not the target of the export curbs on ZTE.

 

"This is a significant new burden on trade with ZTE," a senior official at the Commerce Department told Reuters. The official declined to comment on whether the U.S. government might take further action against ZTE.

 

The company can appeal against the action.

 

ZTE, based in the southern Chinese boomtown of Shenzhen, said in a statement on Sunday that it was aware of media reports on U.S. export restrictions.

 

"ZTE is highly concerned about recent media reports relating to a U.S. Department of Commerce investigation," the company said. "ZTE has been working with associated U.S. government departments on investigations since 2012 and maintains constant communication with associated departments and is committed to fully address and resolve any concerns."

 

Trade in shares in ZTE, which also sells consumer electronic devices such as smartphones in the United States, was suspended on Monday in Hong Kong and Shenzhen. The company did not offer an explanation.

 

"We believe the restrictions, if implemented, will cause significant supply problems to ZTE," Jefferies analyst Cynthia Meng wrote in a note, adding that ZTE has major trading relationships with several U.S. companies including Qualcomm, Microsoft and IBM.

 

the violations:

Commerce Department investigated ZTE since 2012 for exporting US tech to Iran's largest telecoms carrier, Telecommunication Co of Iran

the US companies whose tech was exported are: MicroSoft, IBM, Dell, Oracle - they denied any knowledge of the transactions

 

who is ZTE?

founded in 1985, ZTE Corp is a Chinese multinational telecom equipment and systems company, HQ in Shenzhen

[Dabombinable]

And Team America World Police strikes again.

[DevilishBooster]

Color me not surprised.

 

 

Seriously, a Chinese company taking US tech and exporting it to someone that is expressly prohibited from receiving US tech. I am not surprised in the slightest.

[SubTract]

Will this be that big of a problem for ZTE. I can't imagine a company selling stuff as cheap as ZTE buying a lot of their parts from the US. It's way to expensive. I'd say anything they were buying from the US they will simply acquire from somewhere else.
I can honestly say I've never seen a "made in america" sticker on anything. I have to admit I don't generally go looking for where something is made.