Sunday, May 22, 2022

ZTE’s Probationary Period for Selling US-Made Products to Iran and North Korea Ends

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ZTE’s probationary period in the US ends after a Texas judge’s ruling on Tuesday, according to a report by The Wall Street Journal† The Chinese telecommunications company has been under U.S. government scrutiny since it pleaded guilty to the illegal sale of American-made equipment in Iran and North Korea in 2017. ZTE was fined $1.2 billion for violating U.S. sanctions against both countries.

as the WSJ notes, US District Judge Ed Kinkeade has decided not to punish ZTE for alleged visa fraud, which is the subject of a separate case currently pending in Georgia. Last March, a ZTE researcher and professor at the Georgia Institute of Technology… accused of abusing the visa system to bring Chinese nationals to the US to work for ZTE. Kinkeade, however, encouraged the government to take necessary legal action against the company.

The end of the probation period could help ZTE regain traction after it spent time on the US economic blacklist in 2018 and replaced its top executives as a condition to resume trading. Despite ending a five-year legal saga, this ruling does not change the fact that US government officials are prohibited from using ZTE and its China-based Huawei products and its status as a threat to national security. no rollback, which prevents telecom providers from using government subsidies to purchase ZTE equipment. The Federal Communications Commission also plans to rip and replace the telecommunications equipment of both ZTE and Huawei in a move that will cost $5.6 billion.

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