United Kingdom telcos warned not to use ZTE network equipment

Visitors pass in front of the ZTE Corp. booth at the Mobile World Congress in Barcelona Spain

Visitors pass in front of the ZTE Corp. booth at the Mobile World Congress in Barcelona Spain

Back in 2012, a U.S. Congressional Report stated that Huawei and ZTE could be a threat to national security. The company had been selling its equipment to Iran and North Korea, which was a major no-no under the trade agreement.

The FT's report notes that Levy's letter also cites a recent settlement between ZTE and USA officials, in which the Chinese firm agreed to pay a $1.2bn fines for violating U.S. sanctions on North Korea and Iran.

The U.S. and British governments are telling companies to steer clear of Chinese smartphone maker ZTE.

While ZTE can still sell its smartphones in the USA, the company's market share in the unlocked segment is very small. "This egregious behavior can not be ignored", US Secretary of Commerce Wilbur Ross said.

"This will be devastating to the company, given their reliance on US products and software", said Jacobson. After the USA placed export restrictions on ZTE in 2016 for Iran sanctions violations, China's Ministry of Commerce and Foreign Ministry criticized the decision.

Last year's agreement suspended $300 million in fines set aside a seven-year denial of ZTE's export privileges during a probationary period.

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NCSC assess that the national security risks arising from the use of ZTE equipment or services within the context of the existing United Kingdom telecommunications infrastructure can not be mitigated.

Qualcomm and ZTE appear to have suffered the latest wounds amid the brewing trade war between the United States and China.

The announcement comes after ZTE Corp. pleaded guilty to illegally shipping U.S. telecommunications equipment to other countries.

The U.S. hit Chinese telecom firm ZTE with a potentially devastating enforcement action on April 16, prohibiting the company from doing business with American firms.

"Instead of reprimanding ZTE staff and senior management, ZTE rewarded them", Commerce Secretary Wilbur Ross said in a statement. -China relations-which stretches from a proposed FCC action against ZTE, Huawei and other companies to Trump's allegation that China and Russian Federation are intentionally devaluing their currencies-the department's action against ZTE takes on an added significance. ZTE already sells both its branded and white-label smartphones via mobile carriers AT&T and Verizon in the US. ZTE did fire the four execs, but it failed to institute any punishment for those 35 employees.

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