wnol.info May 23 2018


ZTE banned from using US-based hardware or software in its products

May 23 2018, 01:29 | Alonzo Simpson

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According to Levy, adding ZTE into the mix would make it impossible to manage the security risks and "the result would be an unacceptable national security risk to the United Kingdom telecoms infrastructure environment".

"The UK telecommunications network already contains a significant amount of equipment supplied by Huawei, also a Chinese equipment manufacturer".

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The denial order against ZTE comes amid brewing tensions between the USA and China that have raised concerns of a trade war between the world's two biggest economies.

According to the Department of Commerce Bureau of Industry and Security (BIS), the China-based company shipped the equipment to Iran and made false statements to the BIS during and after the investigation and trial.

"ZTE misled the Department of Commerce", said Secretary Wilbur Ross. The Chinese company used a series of shell companies to sell its products in Iran, and after pleading guilty, it promised to terminate four senior employees and to discipline 35 others. These bonuses were not supposed to be handed out under the terms of its agreement with the U.S. In addition, these employees were supposed to receive letters of reprimand from ZTE brass that did not get sent until March, 2018.

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The Chinese company, which sells smartphones in the USA, paid $US890 million ($1.145 billion) in fines and penalties, with an additional penalty of $US300 million that could be imposed. However, hardware and software aspects of those devices originated in the United States, which is a blatant violation of Iranian trade embargoes instituted by the US government.

In February, the heads of the CIA, FBI, NSA, and the director of national intelligence to the Senate Intelligence Committee also recommended that Americans not use products from Huawei and ZTE. "And it provides the capacity to conduct undetected espionage".

Douglas Jacobson, an exports control lawyer who represents suppliers to ZTE, called the ban highly unusual and said it would severely affect the company.

The US just handed down more penalties against a Chinese telecommunications giant.

ZTE will still be allowed to sell smartphones in the United States, at least for now.

USA intelligence service leaders have repeated claims of Huawei collaborating with the Chinese government since 2012, but have provided no evidence.



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