ZTE Will Not Be Able To Buy Qualcomm Processors Anymore

17 Abril, 2018, 10:42 | Author: Arnold Perez
  • U.S. companies banned from selling components to ZTE		
	Brian Heater

   	7 hours

After the US placed export restrictions on ZTE in 2016 for Iran sanctions violations, China's Ministry of Commerce and Foreign Ministry criticized the decision.

ZTE has said that it will launch 5G devices in either late 2018 or early 2019, with smartphones, tablets, and customer premises equipment already under development.

Although Qualcomm's CEO Steve Mollenkopf received assurances from China's vice president during a meeting in late March that the transaction wouldn't be affected by global politics, according to the Wall Street Journal, observers are nonetheless cautioning that China could withhold approval in retaliation for US tariffs on Chinese imports.

It appears that Huawei is not the only Chinese smartphone manufacturer that is facing heavy scrutiny from United States federal agencies.

A senior department official told Reuters that ZTE, "provided information back to us basically admitting that they had made these false statements".

ZTE was similarly the subject of a 2012 investigation by the FBI and US Commerce Department after allegedly setting up a network of sub-companies to illegally export Microsoft, HP, Oracle, Dell, Cisco, and Symantec products to Iran.

ZTE phones might not be very well known or popular in Western markets, but ZTE has a lot of great devices in its lineup. In response, Qualcomm shares took a 1.25 per cent drop on Monday, while Acacia, who counts ZTE as a major customer, took a massive 35 per cent nosedive.

ZTE will probably miss shipments and lose orders on handsets and transmission equipment as a U.S. export ban leads to a lack of components for China's largest-listed telecommunications equipment manufacturer, analysts said. ZTE then went on to hide the practice.

More news: Guardiola fears Man City could still falter in title race
More news: Why the Colorado marijuana tax doesn't benefit teachers' pay
More news: Facebook Bookmarks Menu Revamped to Help Find Privacy Settings More Easily

As punishment, the government threatened to cut off ZTE's global supply chain, which would effectively destroy the company. Instead of reprimanding ZTE staff and senior management, ZTE rewarded them. The company was also supposed to revoke the bonuses of any employees involved.

As part of the original settlement with the US, ZTE agreed to a seven year suspended denial of privileges sentence.

The Chinese company, which sells smartphones in the United States, paid $890 million in fines and penalties, with an additional penalty of $300 million that could be imposed.

This means that not only did ZTE break USA trade law and attempt to cover it up, but it is not following through with the punishments for that transgression.

ZTE agreed in March of previous year to plead guilty and pay as much as $1.2 billion for violating usa laws restricting sale of American technology to Iran. The explosion in Chinese OEMs comes down to a few things, ...

The US government has banned domestic tech companies from selling components for seven years in a move that will affect chipmakers like Qualcomm, as well as US optical companies such as Finisar.

Obviously, it has the potential to severely impact ZTE's business in a negative way. "This is going to tank their stock". Last year, AT&T pulled out of negotiations to sell Huawei phones in the USA amid pressure over national security concerns.

ZTE has sold handset devices to USA mobile carriers AT&T Inc, T-Mobile US Inc and Sprint Corp.



NASA to launch satellite in search of new worlds
It's not created to find Earth-like planets, but instead, planets that are orbiting the "habitable zone" of nearby small stars. More than a decade ago, Massachusetts Institute of Technology scientists first proposed the idea of a mission like TESS .

Thunder play-by-play man Davis suspended 1 game for comment
It is indeed unfortunate that Davis used the term , which is easily recognizable as racist, in his broadcast on Wednesday night. Many took to social media to complain about Davis' choice of words.

Cruz Roja dirigirá misión para recuperar cadáveres de equipo periodístico
Una vez que la organización humanitaria esté en posesión de los cuerpos, "se los entregará a las autoridades investigativas y judiciales competentes".

English Premier League match report Newcastle United v Arsenal 15 April 2018
Arsenal's 2-1 defeat to Newcastle United on Sunday means they are enduring their worst run away from home in Premier League history.

Warriors y Rockets, los favoritos en Las Vegas
El partido fue, como se prevé que será la serie, ampliamente favorable para los Warriors . Llegó a los playoffs a los tumbos y entró 7° en la Conferencia Oeste .

Dalma Maradona confirmó que será mamá
Sin embargo, este mensaje en la red social desató una decisión inesperada de parte de Dalma Maradona . Una nena... y no la llames Diega, porfa.

Dispara a compañero de secundaria en Huixquilucan y se suicida
Hasta el momento, los agentes policiacos no han dado detalles en cuanto a la muerte del adolescente que se suicido en su casa, ni de la familia.

Rajoy y Macri no reconocerán resultados de elecciones en Venezuela
Uno de los datos destacados por la Casa Rosada fue que el presidente europeo llegó junto con una nutrida comitiva de empresarios. El Jefe de Estado argentino se reunirá posteriormente con empresarios españoles invitados a ese encuentro.

Condenan en Dominicana asesinato de equipo periodístico de Ecuador
El reportero Javier Ortega , el fotógrafo Paul Rivas y el chofer Efraín Segarra fueron secuestrados el pasado 26 de marzo en la provincia ecuatoriana de Esmeraldas y desde entonces nada se supo de ellos.

Chinese official meets Kim Jong Un, ahead of inter-Korean summit
North Korea and China seem to be celebrating closer ties, with Kim Jong Un putting on a banquet today . Song and an art troupe to Pyongyang, the North Korean capital, to attend an worldwide art festival.