{"id":24633,"date":"2018-04-18T08:36:41","date_gmt":"2018-04-18T07:36:41","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/issues\/economy\/24633-u-s-slaps-7-year-ban-on-chinese-company-that-helped-iran-regime-evade-sanctions"},"modified":"2023-01-18T14:58:18","modified_gmt":"2023-01-18T13:58:18","slug":"u-s-slaps-7-year-ban-on-chinese-company-that-helped-iran-regime-evade-sanctions","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/u-s-slaps-7-year-ban-on-chinese-company-that-helped-iran-regime-evade-sanctions\/","title":{"rendered":"U.S. Slaps 7-Year Ban on Chinese Company That Helped Iran Regime Evade Sanctions"},"content":{"rendered":"

\"ZTE\"<\/p>\n

NCRI Staff<\/p>\n

NCRI –\u00a0The US Department of Commerce has handed down a seven-year ban on American companies selling components to a Chinese company that broke an agreement after illegally shipped goods to Iran.<\/p>\n

This decision, announced by US officials on Monday, could devastate telecom equipment maker ZTE Corp as American businesses provide roughly 25-30% of the components that ZTE uses to build products like smartphones.<\/p>\n

Eric Hirschhorn<\/a>, a former US undersecretary of commerce who was heavily involved in the case, said: \u201cIf the company is not able to resolve it, they may very well be put out of business by this. Many banks and companies even outside the US are not going to want to deal with them.\u201d<\/p>\n

Indeed, their Hong Kong and Shenzhen shares have already been suspended and they are facing additional penalties of $300 million.<\/p>\n

Other reactions<\/p>\n

The shares of ZTE suppliers in the US have fallen sharply since the Commerce ban was announced, including:<\/p>\n

\u2022 Acacia Communications Inc<\/p>\n

\u2022 Lumentum Holdings<\/p>\n

\u2022 Finisar Corp<\/p>\n

\u2022 Oclaro Inc<\/p>\n

Whilst, Britain\u2019s main cybersecurity agency has written to UK\u2019s telecommunications companies to warn them against working with ZTE.<\/p>\n

All in all, this should be a sharp warning for anyone who wishes to do businesses with the Iranian Regime, while a third of the people live in poverty.<\/p>\n

Previous legal action<\/p>\n

In 2017, ZTE pled guilty in federal court to conspiring to violate US sanctions by illegally shipping US technology to Iran and made an agreement with the US government.<\/p>\n

ZTE agreed to plead guilty to the smuggling in order to maintain continued access to the US market and avoid the Commerce Department\u2019s threat to cut off its global supply chain Under the agreement, ZTE promised to:<\/p>\n

\u2022 bdismiss four senior employees<\/p>\n

\u2022 discipline 35 others<\/p>\n

\u2022 pay $890 million in fines and penalties<\/p>\n

However, the company admitted in March that it hadn\u2019t disciplined the 35 employees, after the US followed up. ZTE said that there had been inaccuracies or, as a senior US official referred to it, \u201cfalse statements\u201d in their previous letter.<\/p>\n

The initial investigation<\/p>\n

A five-year federal investigation into ZTE, which began following reports from Reuters<\/a> in 2012, found that the company conspired to evade US sanctions by purchasing US components and using them to build ZTE equipment, which was then shipped to Iran.
They even devised elaborate schemes to hide the smuggling of millions of dollars\u2019 worth US technology to Iran\u2019s largest telecoms carrier, which is a front for the Iranian mullahs.<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

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