ZTE has “certain actions” to take after US ban

As Huawei is now reportedly under investigation by the Department of Justice, ZTE is already under the effects of the Department of Commerce’s Denial Order — it cannot source products from United States companies for the next 7 years.

The main claim against the Chinese telecoms company was that it made numerous false statements in negotiating the settlement with the government, which accused it of violating trade sanctions related to Iran and North Korea. It also apparently failed to carry out terms of the settlement when being evaluated.

It was recently suggested by an agency source that ZTE could make an unofficial appeal with the department by providing extra evidence against its claims. But there’s a little more menace from the company in a vague statement released today. Reuters reports that ZTE is planning to take “certain actions” through the United States legal framework, but did not specify what they were. It also said that its listed shares on the Hong Kong exchange remain off of active trading.

Both Huawei and ZTE have been under suspicion by the US government with varying intensity over the past several years for accusations of copyright infringement, consumer data siphoning and sanction violations. They have been named national security threats to the communications grid.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.