Skip to main content

US government bans American companies from selling components to ZTE

ZTE may not be the biggest name in smartphones in the United States, but the Chinese company has built itself up as a regular player particularly in the budget segment. Today, though, the United States government has banned US companies from selling to the Chinese company.

Last year, ZTE plead guilty in a federal court for conspiring to illegally ship US goods and tech to Iran, violating US sanctions. ZTE paid nearly $900 million in fines and fired multiple employees in accordance with the court.

However, ZTE was also supposed to “discipline” 35 other employees, which the company has since admitted to having not done. As reported by Reuters, this violation of terms in the sanctions case has resulted in a ban on American companies selling to ZTE. A US official states:

[ZTE] provided information back to us basically admitting that they had made these false statements. That was in response to the U.S. asking for the information. We can’t trust what they are telling us is truthful, and in international commerce, truth is pretty important.

A lawyer representing suppliers to ZTE said that this ban is “highly unusual” and that it will be “devastating to the company.” It’s estimated that 25-30% of ZTE’s components come from US companies, both in the company’s networking gear and smartphone products.


Check out 9to5Google on YouTube for more news:

FTC: We use income earning auto affiliate links. More.

You’re reading 9to5Google — experts who break news about Google and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Google on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

Comments

Author

Avatar for Ben Schoon Ben Schoon

Ben is a Senior Editor for 9to5Google.

Find him on Twitter @NexusBen. Send tips to schoon@9to5g.com or encrypted to benschoon@protonmail.com.


Manage push notifications

notification icon
We would like to show you notifications for the latest news and updates.
notification icon
You are subscribed to notifications
notification icon
We would like to show you notifications for the latest news and updates.
notification icon
You are subscribed to notifications