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!

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

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

silverer Mon, 04/16/2018 - 10:01 Permalink

Now China will turn its infinite workforce and highly skilled engineers educated in China and the USA into developing better switches at 1/3 less cost. Keep up the good work, USA. All you are doing is forcing countries to adjust, adapt, survive, and improve. They won't need their "mama" anymore.

Justin Case silverer Mon, 04/16/2018 - 10:24 Permalink

China will turn its infinite workforce and highly skilled engineers

When US cut export of Intel processors to China, they developed their own processors.

China's latest supercomputer is a monolithic system with 10.65 million compute cores built entirely with Chinese microprocessors. This follows a U.S. government decision last year to deny China access to Intel's fastest microprocessors.

There is no U.S.-made system that comes close to the performance of China's new system, the Sunway TaihuLight. Its theoretical peak performance is 124.5 petaflops, according to the latest biannual release today of the world's Top500 supercomputers. It is the first system to exceed 100 petaflops. A petaflop equals one thousand trillion (one quadrillion) sustained floating-point operations per second.

Cutting them off of technology will be a mere short term inconvenience. They have the highest educated and number of engineers in the world.

US corporations moved there for that reason.

In reply to by silverer

ombudsmanrules silverer Mon, 04/16/2018 - 10:43 Permalink

Exactly what happened with being denied the latest Intel Xeon Phi accelerators for HPC.  The Chinese just got to work and in record time have built the 'China Accelerator' co-processor which is now at least as good.  

Same with the world's fastest computer by a mile.  Sunway is 100% Chinese design - 260 cores on the die.  Streets ahead of the #2 fastest computer, which is also Chinese. 

Huawei is now probably the world leader in optical switching technology, 400G and even 800G+bps networking.  At the other end Espressif came from nowhere in 2014 and has just shipped 100 million processors, with the ESP32 and 8266 WiFi on chip devices selling for peanuts and being seriously powerful.  Their take-up is exploding to the point where the traditional players are now struggling to compete.

This whining about stolen IP is garbage. It almost certainly happened a lot in the past, but their latest stuff is staggeringly good. 
Not only is not stolen, it's better.

In reply to by silverer