UK, US Governments Warn Against Buying ZTE Hardware
17 April, 2018, 18:50 | Author: Chad Mckenzie
In a statement that only addressed USA actions, China's Commerce Ministry said it is looking at the export controls on ZTE and urged the United States to provide "an impartial, fair and stable legal and policy environment".
Now, the department has determined that ZTE made false statements BIS in 2016, during settlement negotiations, and 2017, during the probationary period, related to senior employee disciplinary actions the company said it was taking or had already taken.
For ZTEitself, the latest USA action means one of the world's top makers of smartphones and communications gear will no longer be able to buy technology from American suppliers, including components central to its products. The company was also supposed to revoke the bonuses of any employees involved.
ZTE has previously partnered with a number of US carriers
ZTE halted its trading both in Hong Kong and Shenzhen on Tuesday pending a release of information.
Shares of Maynard, Massachusetts-based Acacia Communications Inc, an exclusive supplier to ZTE which got 30 percent of its total revenue in 2017 from the company, fell as much as 34.7 percent in early trade, hitting a record low.
"If the company is not able to resolve it, they may very well be put out of business by this".
China said on Tuesday it would protect its "rights and interests" after the USA banned American companies from selling parts to Chinese phone maker ZTE for seven years.
ZTE's innovative Axon M is unlike any smartphone you've ever used.
In a letter seen by the Financial Times, Ian Levy, technical director at the NCSC, wrote to United Kingdom telcos, ZTE and Ofcom warning "the use of ZTE equipment or services within existing telecommunications infrastructure would present risk to United Kingdom national security that could not be mitigated effectively or practicably".
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Britain's cyber-security watchdog has warned telecommunications companies against dealing with the Chinese manufacturer ZTE, citing "potential risks" to national security.
The NCSC said it would be "impossible" to manage risks to the telecommunications sector if ZTE equipment was deployed at scale and that using ZTE equipment and services would have a "long term negative effect" on the security of the UK.
For ZTE, it has been a rough 24 hours, with the United States government hitting the company with a USA export ban.
Chinese phone and mobile equipment maker ZTE just received a stinging slap on the wrist from the U.S. Department of Commerce. Last year, AT&T pulled out of negotiations to sell Huawei phones in the USA amid pressure over national security concerns.
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