China's ZTE removed chief compliance officer before United States sanction

21 April, 2018, 13:16 | Author: Edward Snyder
  • 1578369_c99a73b6c355be863f63f565ce1b0e6a

On Friday, ZTE, based in China, said that the ban by the usa on exports to the technology company could threaten its survival as well as adversely affect companies in the U.S.

In a separate case, American authorities this week barred state-owned ZTE Corp., one of China's biggest technology companies, from exporting USA components.

"Until the relevant investigation is concluded, the US Department of Commerce's Bureau of Industry and Security (BIS) insists on imposing the most stringent sanctions on the company". Washington later found ZTE guilty of such sales, but the two sides reached an agreement last year that let the Chinese firm avoid a threatened seven-year ban on buying USA components.

ZTE has described a United States sales ban on its products as "unacceptable" and pledges to take legal steps, if necessary, to protect the company's interests as well as that of its stakeholders and customers.

If no settlement is reached, the seven-year export ban would not only hurt ZTE, China's largest listed telecommunications equipment manufacturer, but deal a blow to the country's goal of recasting itself as a leading innovator.

The sanctions could handicap ZTE's global business selling smartphones that use Google Inc.'s Android system and network gear for phone and internet companies that incorporates USA chips and other technology.




The trouble for ZTE's supply chain began on Monday when the US Commerce Department imposed a ban on sales by American companies to ZTE for seven years.

"We're going to have to see how this unfolds".

The company does not give any details about the legal avenues that may be open to it, but the threat comes at the end of the first response from the company to this week's action by the US Department of Commerce (DoC). The official said ZTE doesn't have administrative appeal rights under agency regulations, but the agency had agreed to receive the evidence through informal procedures in the near future. ZTE said that they created several compliance teams (some led by the CEO) and hired external consultants to formulate training, operations, and procedures to ensure that their products won't be sold to embargoed nations.

Backstory: A trade war could be brewing, with tit-for-tat tariffs being applied by the U.S. and China, spurred by Donald Trump's concerns about China stealing American IP.

Cheng did not respond to an email and a LinkedIn message seeking comment.

The United States is ZTE's top smartphone market, accounting for 46 percent of its shipments, followed by China at 24 percent, according to research firm IDC. The company is set to pay a $1.19 billion fine.

Recommended:

  • Power largely restored after Puerto Rico blackout

    Power largely restored after Puerto Rico blackout

    In March, six months since Hurricane Maria walloped the island, Gov. Rosselló is pushing a bill to privatize the power system.
    Sensex Ends 95 Points Higher; TCS Gains Ahead Of Q4 Earnings

    Sensex Ends 95 Points Higher; TCS Gains Ahead Of Q4 Earnings

    IndusInd Bank gained 0.69 percent to 1857.45 and TCS rose 0.43 percent to Rs 3173 ahead of earnings. In the broader market, the BSE Midcap and BSE Smallcap indices gained 0.3 per cent.
    Shohei Ohtani Leaves Start After Two Innings With Blister

    Shohei Ohtani Leaves Start After Two Innings With Blister

    Martinez explained that Austin broke an unwritten rule that merited retaliation from the Red Sox. Instead, the blister and the powerful Boston Red Sox were far too much to overcome.
  • How impeachment process of judges works

    The SC had ruled that death of judge Loya, who was hearing the Sohrabuddin Sheikh alleged fake encounter case, was natural. The Congress feeling the heat in a number of cases and losing all-round credibility has gone ahead with the impeachment .
    Inside Kourtney Kardashian's 39th Birthday Bash!

    Inside Kourtney Kardashian's 39th Birthday Bash!

    The publication claims that on top of the trust fund, if Tristan is caught cheating again he must add another $10 million. Kris Jenner gave a heartfelt speech to kick off Kourtney Kardashian's birthday party on Thursday (19.04.18).
    Prince death: No criminal charges to be filed

    Prince death: No criminal charges to be filed

    No criminal charges will be filed in connection with the death of Prince , a Minnesota prosecutor announced on Thursday. A toxicology report after his death found an " exceedingly high " level of the opioid fentanyl in his body.
  • West Brom Vs Liverpool Preview

    In four meetings this campaign, City have won just one outing, including suffering a Champions League quarter-final exit. The Baggies are now nine points behind 17th placed Swansea City, who also have a game in hand on the bottom-placed side.
    Apple will launch 11 new smartphones,

    Apple will launch 11 new smartphones,

    Apple has refrained from adding dual-SIM support in its iPhones all these years, but 2018 could be different for the company. That's because the entry-level iPhone for 2018, the X SE, will cost $100 more than the entry-level iPhone 8 did a year ago .
    Israeli army reveals images allegedly showing Iran's involvement in Syria

    Israeli army reveals images allegedly showing Iran's involvement in Syria

    Iran, which has to depend largely on Syria's air defense system, is particularly exposed to Israel's air force. Hezbollah's warnings reflect the point of view of Tehran and are a forewarning to Israel.
  • Postgame Comments from Eric Bledsoe is a Bad Look

    Postgame Comments from Eric Bledsoe is a Bad Look

    Baynes finished the game with six points, six rebounds and two blocks. "Ultimately, we just want to win games". The teams have soared past the total in each of the first two games in the series.
    ESU students organizing rally, march for

    ESU students organizing rally, march for "sensible gun reform"

    Lebanon community become more aware of how young people in other parts of the Pittsburgh area are impacted by gun violence. Caruso and his fellow student organizers want lawmakers to pass tighter gun regulations.
    Canadian cruise ship cocaine smuggler Melina Roberge gets eight years' jail

    Canadian cruise ship cocaine smuggler Melina Roberge gets eight years' jail

    And since her arrest and incarceration in different maximum security Sydney women's prisons, she had regretted her actions. Roberge and Lagace became Instagram stars for showing off their smuggling trip aboard the cruise ship MS Sea Princess .


Popular

Alfie Evans: Court rules hospital to begin 'end of life' plan
It was the Court of Appeal that set Monday, April 23rd, as the date for the removal of Alfie's ventilation. Crowds of supporters also besieged Alder Hey Hospital to demonstrate and protest on Alfie's behalf.

Marcos Alonso: Banned Chelsea Defender To Miss FA Cup Semi-Final
SOUTHAMPTON boss Mark Hughes is happy the Football Association charged Chelsea's Marcos Alonso with violent conduct after his controversial challenge on Shane Long.

Pentagon denies Mattis wanted congress backed Syria strike
Mia Love, R-Utah, signed a letter with almost 100 House members, Republicans and Democrats, that made the same point. John McCain, chairman of the Senate Armed Services Committee.

Senate to Allow Breastfeeding Mothers to Bring Infants to Chamber Floor
The 50-year-old senator previously said she was anxious that outdated Senate rules would make it harder to do her job. Earlier this month, she became the first sitting senator to give birth while in office .

Oil Prices Jumped to the New High Since 2014
According to the International Energy Agency (IEA), the USA will overtake Russian Federation to become the world's largest oil producer by 2023.

Paul George expects to be 'back to 100' percent for Game 3
Paul George, who scored 36 points in Game 1, finished with 18 on 6-for-21 shooting. "We just didn't score enough points". George's 3-point accuracy remained ridiculous in the first half, when he twice was fouled on successful 3-pointers.

Bruno Sammartino dies age 82
Sammartino would be champion off and on again until leaving WWF for good in 1988. "Rest in power and thank you Bruno Sammartino ". He went on to hold the title for what was an incredible eight years, a record which will likely never be broken.

United Nations security team 'shot at' in Syria ahead of chemical weapons inspection
Douma was the last town to hold out in the besieged Eastern Ghouta enclave, the last big rebel bastion near the capital Damascus . Earlier this month, four Iranian military personnel were killed in an airstrike on Syria's T4 air base, also in Homs.

Cuba's first non-Castro leader since 1959 has officially been nominated
Global observers and Cubans alike will be scrutinizing every move he makes after he officially takes office on Thursday. Trump has cast a cloud over the detente reached in 2014 between Raul Castro and former US President Barack Obama.

Commonwealth Games 2018: Vinesh Phogat wins Gold in Women's 50kg freestyle category
This is consecutive gold medal for Vinesh in Commonwealth Games after winning it four years ago in 48kg category in Glasgow. She had won the World Championships in 2012 and is also a bronze medalist in the 2010 Commonwealth Games held in Delhi.