ZTE says that the ban will impact the "survival and development" of ZTE, which is easy to believe since the ban would prevent ZTE from using materials like mobile processors from Qualcomm and other parts from the likes of Intel and Dolby.
It urged the Chinese government to speed up implementation of national guidelines on corporate oversight, and go through informal channels and seek leniency with U.S. Congress members to resolve the ZTE case. The Commerce Department said ZTE reneged on a pledge to discipline employees who were involved in violating usa controls on technology sales to Iran and North Korea and instead paid them bonuses. Last year alone, it said it invested more than US$50 million in its export control compliance efforts and planned to invest more resources this year. ZTE had promised to dismiss four senior employees and discipline 35 others involved in the trade violation by either reducing their bonuses or reprimanding them.
According to the U.S., this was in violation of a settlement in March 2017 that encompassed ZTE's agreement to a seven-year suspension of export sales if it broke additional conditions, including carrying out disciplinary action against executives responsible for the equipment sale to the two countries.
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But that training focused more on making the ideal latte as the company struggled with sputtering sales. But by this time, the video of the Black men's apprehension had already gone viral nationwide.
It is not acceptable that the U.S. Commerce Department insists on the unfairly imposing the severe penalty on the company even prior to the completion of investigating all the facts, ignoring ZTE's diligent work and the progress it's made on compliance with exports, said the company in its statement. It would also handicap the mainland's ability to build the world's largest 5G network by the end of this decade.
The heads of the CIA, the NSA, and the Federal Bureau of Investigation, as well as the director of national intelligence and several congressmen, all spoke about the potential dangers of owning or using a mobile device from foreign companies like ZTE and Huawei during a Senate Intelligence Committee hearing. ZTE, however, claims in a statement that it is boosting export compliance and needs more time to investigate.
"We're going to have to see how this unfolds".
In response to the ZTE ban, China's Ministry of Commerce said twice this week that it would take necessary measures to protect the interests of its companies. "Within ZTE, compliance is regarded as the foundation and bottom-line of the company's operation".