ZTE has formally responded to the U.S. export ban on its products, saying that the ban “will severely impact the survival and development of ZTE.” The company goes on to say that it has invested “tremendous resources” and has made “significant progress since 2016,” in regards to its Export Control Compliance program. The company cites its self-identification of the issues, its action taken against employees who engaged in illegal activities, and its hiring of a U.S. law firm to conduct an independent investigation into ZTE’s export controls.
Four days ago, the U.S. Department of Commerce issued a ban on American companies selling their parts to ZTE. The ban came about because ZTE illegally shipped U.S. equipment to Iran and North Korea. ZTE agreed to fire four employees and and deny bonuses to those involved in the illegal activities. While four employees were fired, 35 remained employed by ZTE and were given bonuses.
As part of the terms it negotiated in the initial court case, ZTE is now unable to export equipment from U.S. companies for seven years. Additionally, Google is in talks with ZTE over the company’s maintenance of its Android license.
Now that the ban is in place, ZTE is threatening judicial measures to protect its company. It remains to be seen if the company will be able to modify or overturn the ban. Stay tuned for updates as this legal matter continues to unfold.