ZTE to fight U.S. export ban, threatens legal action

ZTE to fight U.S. export ban, threatens legal action
Just the other day, we passed along the news that the U.S. Commerce Department's Bureau of Industry Standards (BIS) was reviving a U.S. export ban that prevents Chinese phone manufacturer ZTE from purchasing anything from the U.S. The ban runs to March 2025. Last year, ZTE was fined $1.19 billion by the U.S. for supplying goods and services to Iran and North Korea. The Commerce Department suspended a seven-year export ban against ZTE under the condition that it follow certain restrictions on bonus payments and issue letters of reprimand to those involved. ZTE allegedly lied to the U.S. about its compliance with this, and the BIS started the export ban against the company.

ZTE could lose access to Snapdragon chipsets and the Android OS following the implementation of the export ban. In a desperation plea to the U.S., the company says that the ruling and the subsequent ban is "unacceptable" and "unfair." The company says that it has taken steps since 2016 to improve its Export Control Compliance program, and states that BIS is wrong to impose the harshest penalty against ZTE before an investigation is completed.

According to the company:

  1. ZTE self-identified the issues in the correspondence and self-reported by ZTE immediately.
  2. The Company has taken measures against the employees who might have been responsible for this incident.
  3. Corrective measures has (sic) been taken immediately.
  4. A prestigious U.S. law firm has been engaged to conduct independent investigation.

And ZTE even tried to point out that the ban would cause problems for U.S. corporations. "The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of U.S. companies," it said in a press release issued today.


Besides stating its case, ZTE also said that it might take legal action to "to protect the legal rights and interests of our Company, our employees and our shareholders, and to fulfill obligations and take responsibilities to our global customers, end-users, partners and suppliers."


source: ZTE

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11 Comments

1. emvxl

Posts: 141; Member since: Sep 29, 2009

Funny, I clicked on the link (ZTE) and a Google privacy error is displayed. Says "Attackers might be trying to steal your information"...

6. tangbunna

Posts: 485; Member since: Sep 29, 2016

if there is a new operating system other than android, tizen, ios, or wm let say, Linux Mobile shipped with zte phone, i will buy zte phone indeed.

2. Farcaster

Posts: 162; Member since: Apr 16, 2018

That's rich coming from a Chinese company. I bet they (Chinese commerce department) wouldn't hesitate to do the same.

3. matistight

Posts: 997; Member since: May 13, 2009

I wonder what they did with the ZTE advertisements at sports arenas, because I've seen many banners at warriors games and such

4. Doakie

Posts: 2478; Member since: May 06, 2009

I don't know how to feel about this. I like ZTE, I loved my Axon 7 and I like my wife's Blade Z Max. But helping out Iran and North Korea seems like a bad idea. So I'm not sure how I feel about ZTE getting killed off in the mobile competition. What are they supposed to offer MediaTek and Jolla?

7. Heisenberg

Posts: 378; Member since: Feb 11, 2015

Howl is it a bad idea doing business with Iran and North Korea?

8. worldpeace

Posts: 3135; Member since: Apr 15, 2016

It's a bad idea since the PotUS is that orange guy, it's fine otherwise..

5. GalaxyLeads_iCrapFollows

Posts: 216; Member since: Nov 29, 2017

hahaha. Cant' help laughing at them. Maybe the chinese can come beg Samsung on their knees for Exynos and Tizen

10. Sammy_DEVIL737

Posts: 1529; Member since: Nov 28, 2016

In your dream.

9. Max1363

Posts: 7; Member since: Apr 21, 2018

Wow! they just killed off ZTE just like that! Let's see if ZTE can come back from this.

11. skwy1963

Posts: 50; Member since: Aug 10, 2013

I'm waiting to see how this plays out I Love My ZTE Blade Zmax.

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