ZTE

ZTE remains in limbo, caught between deal with White House and possible legislation

ZTE remains in limbo, caught between deal with White House and possible legislation
Some employees working for Chinese smartphone manufacturer ZTE are having to hold it in when nature calls. According to the South China Morning Post, a broken urinal at ZTE's facility in Shenzhen, China is not being repaired. It isn't that the company is being cheap. It's just that the urinal is made by American Standard, located in New Jersey, and the U.S. export ban prevents ZTE from purchasing parts for it.

A photo of the offending urinal (and we have to believe it is offending at this point) was posted online and verified by a ZTE employee. A sign taped above the urinal is in Chinese; translated it says that the urinal will be fixed as soon as the U.S. export ban is lifted. And ZTE happens to be in limbo as far as the ban is concerned. On one hand, ZTE reportedly agreed to demands laid out by the White House in exchange for the lifting of the export ban. ZTE promised to pay a $1 billion fine, and put $400 million into escrow to cover future illegal escapades. It also promised to replace its executive team and the Board of Directors while installing a U.S. selected team to monitor compliance.

On Monday the Senate passed a defense bill that includes an amendment to reinstate the ban. Next, the Senate and House negotiate to turn their bills into a final version that gets sent to the president, who will probably veto it. And considering that both chambers probably don't have the necessary two-third majority needed to overturn the veto, the bill will most likely be defeated.

ZTE has already paid the $1 billion fine, and is itching to get the export ban lifted so that it can purchase the U.S. sourced hardware, software and components necessary for it to build its phones. U.S. lawmakers have a different point of view, especially since ZTE was named a national security threat by Congress back in 2012 because of its ties to the Chinese government. The company was said to be using its phones and networking equipment to spy on U.S. consumers and corporations.

The phone maker has no one else but itself to blame for being in this mess. After violating U.S. sanctions by selling goods and services to North Korea and Iran, the U.S. Commerce Department fined ZTE $1.19 billion last year, and ordered the company to put a letter of reprimand in the files of all employees involved. It also demanded that bonus payments to those employees be withheld. And a U.S. export ban was stayed and would not go into effect as long as the manufacturer kept its nose clean.

Instead, ZTE failed to comply with the Commerce Department's punishments until the latter started sniffing around. As a result, the stay on the export ban was lifted putting ZTE in the predicament it now finds itself in. The ban isn't scheduled to end until the middle of March 2025. And that's a long time for ZTE employees to hold it in.

source: SCMP

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10 Comments

1. RevolutionA

Posts: 392; Member since: Sep 30, 2017

They are wasting their time.

2. lamzaza

Posts: 23; Member since: Apr 24, 2017

Trump the pirated is stealing from everybody

6. nerdmb

Posts: 57; Member since: Nov 11, 2017

He’s just getting back what china has been stealing

8. tedkord

Posts: 17288; Member since: Jun 17, 2009

He's getting nothing back. Every tariff he adds, they'll add an equal amount. Prices go up, because sellers aren't going to take the hit, and just like his wall, we wind up paying. Mexico and China are laughing at us. (Just like the rest of the world, except Russia, which is just smiling knowingly, like you do when a plan comes together perfectly).

11. rouyal

Posts: 1573; Member since: Jan 05, 2018

Oh man, Mexico and China are laughing at the US? I thought we were finally getting approval of those two en vogue countries, lol! Everyone is trying to live there. You thinking the world is laughing at the US is that TDS you have whispering in you head. No one cares what EU nanny state or Canadian soy boys think. Same with the ‘muh Russia’ conspiracy theory.

3. Jacksie66 unregistered

Do they not make urinals in china?

4. KingSam

Posts: 1421; Member since: Mar 13, 2016

What's the point of fixing if the company has a death sentence.

9. tedkord

Posts: 17288; Member since: Jun 17, 2009

I'm sure they do, but they're not free. When you're out of business, no money to buy urinals.

7. MarmiteTheDog

Posts: 191; Member since: Jul 31, 2017

ZTE have every right to tell the US govt to shove it up their **** If the rest of the world followed suit, the world would be better for it.

10. tedkord

Posts: 17288; Member since: Jun 17, 2009

They do have that right. And the US has the right to sanction them. And here we are.

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