Data Centre

Networks

Chinese giant ZTE slips off US export sh*tlist – and it only cost $900m

Tech dragon cleared after admitting to sanction violations

By Shaun Nichols in San Francisco

3 SHARE

The US Department of Commerce has scrapped trade restrictions that left Chinese tech monster ZTE unable to import components from America.

The DoC said in a Wednesday entry to its Federal Register that it would be taking the network hardware vendor off its Entity List and would end the export controls that have been in place since March of last year, after ZTE was accused of illegally selling equipment to Iran and North Korea.

Last month, ZTE agreed to end that case by taking a plea deal and paying a fine of $892m for violating US trade sanctions.

"In light of the recent settlement of administrative and criminal enforcement actions against ZTE Corporation and ZTE Kangxun, the EndUser Review Committee has determined that these two persons being removed have performed their undertakings to the US government in a timely manner and have otherwise cooperated with the US government in resolving the matter which led to the two entities' listing," the notice reads.

ZTE had been accused of selling network and telco equipment to both Iran and North Korea – in violation of US trade sanctions – then trying to cover their tracks by routing the deals through its Chinese subsidiaries.

With the sanctions lifted, ZTE will once again be able to do business with companies within the States, a move the company hopes will help turn around the plunging profits that have forced it to lay off thousands of workers.

Not everyone involved in the incident is getting off the list, however. Former CEO Shi Lirong, who oversaw the scheme, will be added individually to the restricted list with limits on business he can conduct from China. ®

Sign up to our NewsletterGet IT in your inbox daily

3 Comments

More from The Register

Colt, Verizon show off inter-carrier SDN

Care for some extra bandwidth? Just turn the knob

Qual-gone: 1,200+ axed from Snapdragon, Centriq giant Qualcomm

Chip designer pushes hundreds out the door in cost-cutting drive

Qualcomm data centre tech veep jumps ship

Whither the Centriq now?

Qualcomm demands blueprints to Intel chips used in Apple iPhones

Enough with the foot-dragging, mobile processor'n'modem giant rails in patent feud

Qualcomm opens maw, prepares to swallow Dutch chipmaker NXP

Increased offer gives shareholders food for thought

NXP becomes N-nixed-P, Apple snubs Qualcomm modems for Intel chips

Shareholders, here's thirty billion dollars so you feel better on double whammy Wednesday

Apple goes global in Qualcomm license war: Patent spat hits China

One-billion Yuan lawsuit in Middle Kingdom alleges further royalty wrongdoings

Psst, says Qualcomm... Kid, you wanna see what a 5G antenna looks like?

Pic Oh, and Intel's modems are garbage, claims chip-slinger waving around speed test data

SoftBank sells off more than half of Arm China for a bargain $775.2m

Chinese investors welcome chip designs with open Arms

Qualcomm touts deal with Chinese giants to really consider using $12bn of its chips

Non-binding 'memorandum of understanding' inked with four smartphone builders