Wednesday, 24 October, 2018

US Senators make final push to ban ZTE with NDAA amendment

US lifts ban on suppliers selling to China's ZTE ZTE can once again do business with American companies
Scott Davis | 16 July, 2018, 07:03

The US Commerce Department has lifted an export ban that blocked Chinese mobile giant ZTE from doing business with US companies.

The punishment came after the company made false statements about disciplining 35 employees involved with illegally shipping us -origin goods to Iran and North Korea, Commerce officials said.

We write to express our strong support for measures in the Senate-passed Fiscal Year 2019 National Defense Authorization Act (FY 2019 NDAA) that would reinstate USA government penalties against ZTE, a Chinese state-directed telecommunications company, and modernize the Committee on Foreign Investment in the United States (CFIUS).

The reprieve follows threats by the Trump administration this week to impose 10 percent tariffs on $200 billion of Chinese goods in a trade war. BIS imposed this seven-year ban and other penalties against ZTE in April 2018 in response to its numerous violations of US export controls and sanctions laws. Finally, ZTE also has replaced the entire board of directors and senior leadership for both entities. President Donald Trump has said he's prepared to put tariffs on as much as $450 billion worth of Chinese exports.

It will now operate with a 10-year suspended ban hanging over its head, which the United States can activate if it finds new violations.




A group of Republican and Democratic U.S. senators on Thursday sent a letter seeking to reinstate penalties on ZTE Corp. Last month, the Senate voted unanimously to reinstate the ban on the company citing national security concerns.

Reuters reported on USA demands for a deal on June 1, and on June 5, revealed that ZTE had signed a preliminary agreement with the Commerce Department, along with the fine and other terms.

ZTE was first hit with the ban in April after it violated the terms of 2017 agreement stipulating that it was not allowed to sell sensitive American technology to Iran and North Korea.

The department imposed the ban in April over allegations that ZTE violated US sanctions against Iran and North Korea, but the company's warnings that the penalty would put it out of business prompted the White House to negotiate a reprieve for the firm. Many U.S. lawmakers see the company as a national security threat.

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