US judge extends ZTE export compliance monitoring
Operations at China’s second-largest telecommunications company ZTE are mostly normal after it was subject to a months-long ban on US imports, though it is under watch from two compliance monitors.
The Department of Commerce had ordered the second monitor to be installed (among other monetary punishments) for a term of 10 years after it stated that ZTE had violated terms of probation — including the alleged rewarding of staff for transgression and lying about the status of its compliance — following a 2012 investigation finding that it had crossed US trade sanctions doing business with Iranian and North Korean businesses.
The thing is, the other compliance monitor, which was supposed to be at ZTE until 2020, is now getting their stay extended. Reuters reports that a US judge has ruled that their watch will last until 2022 because of the probation violation. The company disclosed the ruling in a filing at the Hong Kong Stock Exchange.
That said, it makes little difference. Both monitors must have the same access at the company and one will be there until at least 2028 anyways.