U.S. Commerce Department bends over backward to give ZTE a forum to appeal the U.S. export ban

U.S. Commerce Department bends over backward to give ZTE a forum to appeal the U.S. export ban
ZTE could be in big trouble of their own doing. The company sold goods and services to Iran and North Korea in 2016, and when caught by the U.S., it agreed to the punishments prescribed by the Commerce Department with a possible seven year U.S. export ban to be put into place if the company failed to comply. Well not only did ZTE allegedly fail to comply, the manufacturer reportedly lied about it and now is banned until 2025 from purchasing U.S. hardware and software.

So what kind of phone can ZTE sell without Snapdragon chips and the Android OS, at least until March 2025 when the ban ends? As one of our loyal readers wrote, perhaps Samsung can sell them Exynos chips and Tizen. 

While ZTE has said that it will appeal the ruling, the question is, to whom? According to the Wall Street Journal, the company has no "administrative appeal rights under agency regulations." But don't ever say that the Commerce Department doesn't have a heart; recognizing the smell of desperation coming from ZTE, the agency will allow it to present evidence on "an informal basis."

Today's report doesn't mention what kind of evidence ZTE might have. If previous information released by the Commerce Department's Bureau of Industry Standards (BIS) is correct, ZTE failed to hold back bonuses to certain employees involved with the Iran and North Korea sales. And the firm didn't issue the letters of reprimand to those employees as promised, until the Commerce Department started snooping around.

At the end of the day, if the allegations are legit, ZTE made its own bed and must lie (no pun intended) in it. It doesn't help that the U.S. government was already concerned with the company's close ties to the Chinese government, which has lead the U.S. to accuse ZTE of using its devices to spy on consumers and corporations in the states.

source: WSJ



1. Subie

Posts: 2395; Member since: Aug 01, 2015

If you do the crime, you do the time...

3. mootu

Posts: 1530; Member since: Mar 16, 2017

What for doing business with countrys the US doesn't like? Do as i say not as i do ? After all the US does plenty of trade with the likes of Saudi Arabia, you know the place where the 911 hijackers came from, the state that also funded them. But hey! people like Trump benefit greatly from these deals.

9. mixedfish

Posts: 1562; Member since: Nov 17, 2013

But but the Saudi's are the good guys.

5. bamzitzrbd63 unregistered

ZTE AXON is the best phone made by them Dolby Atmos and USB C

6. Loveneesh

Posts: 443; Member since: Jul 14, 2015

I think us government thinks that, there's too much competition in market and they're providing much better products at good prices. But, then who will buy our own overpriced fruit phone? Let's banned all such companies and remove competition for our fruit company.

7. Subie

Posts: 2395; Member since: Aug 01, 2015

Except this particular story is about an export ban, which could also negatively affect American companies like Google and Qualcomm. I doubt this will do anything to prop up iphone sales in the USA.

10. Doakie

Posts: 2478; Member since: May 06, 2009

Sounds about as illogical as the anti-gun debate right now. But I guess if you want to go that outlandish then, ok. In the mean time I'm mourning the fact that a Axon 8/9 isn't going to happen...

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