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US suspends export privileges to China's ZTE

AFP  |  Washington 

US authorities issued an order today barring US exports of sensitive technology to giant because of false statements made during an investigation into its illegal sale of goods to and

The company pleaded guilty in March 2017 to unlawful exports and was hit with USD1.2 billion in fines, the largest criminal penalty in US history in an export control case.

pleaded guilty to conspiring to unlawfully export, obstruction of justice and making a false statement.

But Commerce Department investigators said the company made additional false statements multiple times about having taken actions against the employees responsible, when they had not.

"made false statements to the when they were originally caught and ... made false statements during the reprieve it was given, and made false statements again during its probation," said in a statement.

These false statements covered up the fact that paid full bonuses to employees that had engaged in illegal conduct, and failed to issue letters of reprimand.

"misled the Instead of reprimanding staff and senior management, rewarded them. This egregious behavior cannot be ignored," Ross said.

A told reporters the department suspended export privileges for ZTE, meaning it can no longer receive US components to incorporate into their products "to prevent them from furthering their illegal activities."

The said there is no "off ramp" for the company to seek a reversal of the blockade.

The five-year investigation into ZTE's actions was first revealed in March 2016.

From January 2010 to March 2016, the company shipped $32 million in US to Iran, and made 283 shipments of to North Korea, with the full knowledge of the highest levels of company management, officials said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 16 2018. 19:40 IST
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