• News
  • Markets

USA fines China's ZTE $1.2 billion for violating Iran, North Korea sanctions

USA fines China's ZTE $1.2 billion for violating Iran, North Korea sanctions

A Chinese telecommunications company has agreed to pay $892 million for violating US sanctions on Iran, settling a case that resulted in increased tension between the USA and China. During that investigation, it found that ZTE was fully aware the company was violating US law, but senior executives at the Chinese company still approved the scheme. ZTE then lied to federal investigators, insisting that the shipments had stopped, the Justice Department said.

"ZTE engaged in an elaborate scheme to acquire US-origin items, send the items to Iran and mask its involvement in those exports", Acting Assistant Attorney General Mary McCord said in a statement.

ZTE - which is is one of the world's biggest telecoms gear makers - admitted shipping large amounts of USA made hardware and software to Iran's largest telecoms carrier and lying about that when caught.

"ZTE acknowledges the mistakes it made, takes responsibility for them, and remains committed to positive change", company chief Zhao Xianming said in a statement.

The company's guilty pleas, which must be approved by a judge, will take place in U.S. District Court in Texas.

In March 2016, ZTE was placed on a list of entities that USA firm could not supply without a license. ZTE acted contrary to U.S. national security or foreign policy interests, the Commerce department said at the time.

ZTE warned last month the penalties could impact its results. The company obtained contracts worth hundreds of millions of dollars from Iranian entities to build telecommunications networks in the country.




Since that March 2016 finding, Commerce has issued a series of temporary reprieves for ZTE from the sanctions. Qualcomm, Microsoft and Intel are among its suppliers. It found that shipped items included things such as microprocessors, routers, and servers, which are specifically regulated under USA law to prevent terrorism from countries on the list.

The settlement ends a five-year federal investigation into ZTE.

ZTE replaced executives allegedly involved, including naming a new president.

The company on Tuesday agreed to a seven-year suspended denial of export privileges, which could be activated if there are further violations. ZTE must also work with a monitor for three years to make sure they comply with export rules. Of the $892 million total, $101 million will be paid to the Treasury's Office of Foreign Assets Control, representing the office's largest settlement in history with a non-financial firm, according to Reuters.

The penalties are among the largest ever imposed in a sanctions case.

Chinese cellphone maker ZTE, the fourth-largest seller of cellphones in the U.S., has reached a blockbuster settlement with USA authorities over its selling of technology to Iran.

Leave Your Comment

Leave Your Comment


Latest News

  • Oil Price Climbs As OPEC Members Stick To Production Cut

    Oil Price Climbs As OPEC Members Stick To Production Cut

    Saudi Arabia has resumed its periodic role as swing producer in the oil market, shouldering the largest share of output cuts. An extension of the supply deal past June will depend on market conditions when OPEC ministers next meet in Vienna May 25.

    Trump to host Germany's Merkel at the White House

    The German government will also talk about both Egypt and Tunisia taking back asylum-seekers who have been rejected in Germany. Germany is interested in creating opportunities and chances for Tunisians before deporting failed asylum seekers, she added.
    Lorde announces new single 'Green Light'

    Lorde announces new single 'Green Light'

    The song opens with haunting piano tones and frustrated lyrics, " I know about what you did and I wanna scream the truth ". The aesthetics and style of Lorde's video were a world apart from counterparts like Taylor Swift and Katy Perry.
  • Gayatri Prajapati rape case: Woman's lawyer says witnesses being threatened

    Gayatri Prajapati rape case: Woman's lawyer says witnesses being threatened

    On Saturday, passport of the rape-accused UP minister was impounded, a look-out notice issued and airports alerted. The apex court today refused to entertain Prajapati's plea against its earlier order of filing of FIR against him.

    PSL: Karachi Kings play Islamabad United in 2nd play-off

    Karachi lost their fourth wicket for 100 runs but then lost last 6 wickets for just 26 runs, as they were bowled out for 126. Chris Gayle is set to play this match and we can expect another big shot from the beast like the previous match.
    Extortion Call to Kill Mahesh's Actress-Daughter

    Extortion Call to Kill Mahesh's Actress-Daughter

    The caller threatened Mahesh Bhatt that he will kill his daughter by pumping bullets if he fails to pay the mentioned amount. The Bollywood's ace director Mahesh Bhatt has received extortion calls from a stranger against his daughter Alia Bhatt .
  • Turkey summons German ambassador over rally ban

    Turkey summons German ambassador over rally ban

    But the German decisions come against the backdrop of renewed strains in relations between Ankara and Berlin over Yucel's arrest. Economy Minister Nihat Zeybekci was due to hold a rally there on Sunday.
    Gareth Bale: Real Madrid midfielder banned for two matches after red card

    Gareth Bale: Real Madrid midfielder banned for two matches after red card

    Real Madrid will be without both Gareth Bale and Cristiano Ronaldo when they take on Eibar on Saturday. Bale will miss Real's La Liga clashes with Eibar on Saturday and Real Betis next weekend.

    London pre-open: Stocks seen lower as investors eye Fed speakers

    Banks climbed Friday as investors priced in an increasing likelihood that interest rates will rise in the coming months. Yellen did not directly address the likely impact of theTrump administration's economic policies in her remarks.
  • India hoists tallest tricolour at Attari; it's visible from Lahore!

    India hoists tallest tricolour at Attari; it's visible from Lahore!

    However, the neighbouring country is suspecting India may use this flag pole for spying objective across the border. On Sunday, tallest national flag in the country measuring 360 feet was lifted at the Attari-Wagah of Punjab.
    Chance the Rapper's meeting with Gov. Bruce Rauner didn't go very well

    Chance the Rapper's meeting with Gov. Bruce Rauner didn't go very well

    Rauner characterized the meeting as positive, noting that Chance was "very focused on getting quickly more money for CPS right now, and I share his passion".

    Judge okays release of Florida nightclub shooter's widow from jail

    Salman's lawyers say the judge's decision to release her while she awaits trial shows that the government has a weak case. Mateen physically abused Salman, he said, and never told her about his plans to carry out the killings.
  • Truex finishes eighth, Jones 15th at QuikTrip 500 in Atlanta

    Truex finishes eighth, Jones 15th at QuikTrip 500 in Atlanta

    Despite the issues for the program, Hamlin was confident in his vehicle prior to a mechanical issue sending him to the garage. In recent years, tracks like Bristol and Darlington have lost some of their luster among drivers due to repave projects.
    SD cards can not  be shared between Nintendo Switch consoles

    SD cards can not be shared between Nintendo Switch consoles

    Have you picked up a skin for your Nintendo Switch , Ranters? Games don't support it yet, but the Nintendo Switch software does. All of this is possible because of the many input methods that the Nintendo Switch supports, including the touchscreen.
    Tensions high at pro Trump rally at the Capitol

    Tensions high at pro Trump rally at the Capitol

    Demonstrations across the country meant to show support and unity for President Donald Trump have grown violent in some areas. Police officers, who were forced to intervene in several fights, arrested nearly a dozen people during the tense rally.
  • Iranian Ships Approach US Ships in Strait of Hormuz

    Iranian Ships Approach US Ships in Strait of Hormuz

    A year earlier the IRGC seized two US Navy boats in the waterway and detained all on board on Iran's Farsi Island in the Gulf. Throughout his election campaign, Trump accused the Obama administration of being weak on Iran, and he vowed to crack down.
    Poachers Killed A Rhino At A Paris Zoo And Stole Its Horn

    Poachers Killed A Rhino At A Paris Zoo And Stole Its Horn

    It is thought that a poacher is behind the attack, as rhino's ivory horns are in high demand on the black market. Vince was born at Burgers' Zoo in the Netherlands in 2012, and was transferred to the Thoiry Zoo in March 2015.
    Headstones found toppled at another Jewish cemetery

    Headstones found toppled at another Jewish cemetery

    He'll also host a New York State-Israel Economic Development working lunch with the mayor of Jerusalem. Headstones were found toppled in a Brooklyn Jewish cemetery Sunday morning, ABC7NY reported .

Breaking News



Recommended

Arsenal vs Bayern Munich, Champions League

In the Champions League this season, they leaked a goal inside the first 20 minutes against PSG (twice), Ludogorets and Bayern. Remember they face a team which has won 14 and drawn two of their last 16 games.

97-year-old twins perish in cold after fall outside

They said Williams was going to her auto to leave Haley's home when she fell in the driveway, near the rear of her vehicle. It added that the cause of death is not yet known but "extreme cold temperatures that evening may have been a factor".

Nadal lost for ideas against 'almost perfect' Querrey

The second seed heads into the final after demolishing third seed Marin Cilic 6-1, 6-2 in just an hour and 23 minutes yesterday. Nadal won the title in Acapulco in 2005 and 2013, and entered the final with a 14-0 career record at the event.

FBI to review case of Muslim teen found dead in Washington

His death was initially ruled a suicide, although the medical examiner for Snohomish County now says his death is "inconclusive". The death of Ben Keita, 18, was initially ruled a suicide. "We are careful not to rush to judgment", Rev.

Giraffe at Denver Zoo quietly gives birth to 'unplanned' baby Dobby

Millions have watched the live stream from April's pen at Animal Adventure Park anticipating the birth of her fourth calf. Zoo officials say mother and baby initially will not be on public display for a few days to provide them peace and quiet.

Meet young Jack Sparrow in new Pirates of the Caribbean 5 trailer

The trailers for Dead Men Tell No Tales have really pulled back on showing Sparrow, and it's not exactly clear why. His costume is pure Jack Sparrow and he has on a hat and long hair, but he is clean shaven and thinner.

Caterpillar stock tumbles on reports of federal prosecutor activity

Caterpillar said the SEC notified the company in late 2015 that it had concluded its investigation without recommending a penalty. Caterpillar has been subponaed a few times in recent years mainly regarding its relationships with U.S. and non-U.S. subsidaries.

Dave Chappelle's first two Netflix specials will premiere later this month

This will, however, be the first time they are presented as specials. Thanks to a deal with Netflix , he's back in a big way. We're curious to see how those subjects come together.

Janadhikar Samiti condemns attacks on Kerala RSS cadres

The silence of the governments is an endorsement that emboldens the RSS to issue such obnoxious threats, the statement added. He has no right to live in this country. "We will garland bharat mata with the heads of 3 lakh Leftists", he threatened.

President Trump's Plans for Border Wall Put Cemex in Tough Spot

A total of 225 companies so far have expressed interest in participating in building the border wall, The Hill reports . Some of the possible general contractors mentioned as prospective bidders include Granite Construction Inc .