ZTE

ZTE gets Commerce Department approval to operate normally in the U.S. until August 1st

ZTE gets Commerce Department approval to operate normally in the U.S. until August 1st
As the U.S. celebrates another birthday today, your thoughts might have turned to the country's fourth largest smartphone vendor, ZTE. So just what is going on with the company, which is the subject of a tug-of-war between the Senate and the White House? The Chinese phone and network equipment company has been given a temporary reprieve by the U.S. Commerce Department, allowing it to operate normally in the states until August 1st. ZTE receives about a third of the components it uses in its smartphones from the U.S.

Back in April, ZTE was banned from receiving any U.S. exports until March 2025 because it failed to comply in a timely manner with Commerce Department punishments it received. ZTE was punished by the U.S. agency for selling goods and services to a pair of countries that were under U.S. sanctions, North Korea and Iran. While the Trump administration worked out a deal with ZTE to lift the ban, and the company already has paid a $1 billion fine that was part of that agreement, the Senate last month voted to restore the ban through legislation.

Reuters says that it is aware of a memo released by ZTE that announced the departure of seven vice presidents, including three that were running the company's legal, finance and supply chain departments. As part of the deal it made with the White House, ZTE had 30 days to remove all executives at the senior vice president level or higher, and all executives involved in the issues that led the Commerce Department to revive the export ban in April. As we pointed out, a $1 billion fine has been paid, and $400 million needs to be put in an escrow account to cover any possible future misdeeds. A U.S. compliance team is supposed to be embedded inside ZTE's operations to make sure that the company isn't operating afoul of U.S. regulations.

An amendment to the National Defense Authorization Act was written to legislate the export ban against ZTE by a group of GOP Senators, who were going against the president's wishes. This bill is usually passed easily with support from both sides of the aisle, although the president would still have to sign it. If he vetoes the bill, it still can become the law of the land with approval from two-thirds of the members of both the Senate and the House. Lawmakers are naturally concerned about ZTE due to its perceived ties with the Chinese government. Back in 2012, the manufacturer was deemed a threat to U.S. national security by a Congressional report.

source: Reuters

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3 Comments

1. kennybenny

Posts: 211; Member since: Apr 10, 2017

Now send us ZTE Axon 7 some Oreo goodness!!!!! I have been waiting for this update since April...... Before ZTE goes belly up!

2. xchatter

Posts: 44; Member since: Mar 25, 2013

USA is the cancer of the modern world.

3. mpperrusquia

Posts: 13; Member since: Jun 01, 2018

That's a gross oversimplification. The US has a LOT of problems. We're far right on economics, healthcare, and foreign policy, while simultaneously being far left on faux "social justice" issues, and outrage culture. We're a balkanized nation that's rapidly pushing towards extremes on both ends of the political spectrum. The saving Grace is the most American principle ever postulated the 1st Amendment. Enshrined is the seperation of Church and State, along with the right to a free and open discourse. With those two gurantees the US can be shaped into whatever country ultimately ends up embodying the closest entity possible to an egalitarian society. If you look at Europe and most of the Western world they don't have the right to free speech as declared within the United States and people are routinely prosecuted for "microagresions" or speaking truth to power. These are nation's that are wonderful in many ways, chiefly by insuring healthcare as a right. They have compromised on the right to free speech and have decided to go after the speech that personally offends them. You turn to the East and the lack of free speech is coupled with theocracy. Specifically fundamentalist extremists that have a war against basic civil liberties. The point of all this is that while the US has many flaws, I'll gladly take all of them for the right to be able to challenge orthodoxy and use my speech to bring about the change I want. I would gladly take that over being able to magically fix all of the many issues with the country. Every free nation and people need to adopt the position of free speech absolutism. Anything short of calling for violence, or direct threats of it should be allowed. That's an issue only the US is currently correct about. The most important issue.

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