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ZTE Complies With US Demands, Receives Partial Reprieve to Push Security Patches

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Contrary to circulating rumors, the U.S. Commerce Department has not lifted the ban on ZTE. A source to the Wall Street Journal corrected this report. Instead, the Chinese manufacturer has been given a partial reprieve while a trade restriction debate is ongoing at Congress.

More importantly, the tech giant was authorized by the government to continue supporting most of the equipment and consumer devices it had already deployed before the ban was put in place. ZTE paid a fine of $1 billion to gain the approval of the government agency, which would allow them to keep their infrastructure operational. At the same time, this allows ZTE to deliver security updates to its phones and several of its products.

The temporarily eased restrictions on the ban, however, is only available until August 1st. Although there is still no guarantee what will happen after that time, there is reason to believe that ZTE will be fully compliant with the agreement it made with the U.S. government.

Apart from paying a fine, the tech manufacturer has also replaced several of its executives, including its CEO. This was one of the key demands of the U.S. imposed on the company for violating its US sanctions to Iran and North Korea. Other actions fulfilled by ZTE include accepting a US-chosen corporate monitor and putting $400 million in escrow.

The trade ban was announced over a couple of months ago. Ever since then, ZTE has remained largely dormant. Since ZTE knows how much of its business requires procuring parts and software from US exports (especially Qualcomm), it has taken the U.S. government's demands seriously.

The question that remains now is, will the U.S. Commerce Department accept ZTE's moves?



Source: The Verge, Engadget

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7 comments:

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  1. ZTE only cares because the US still has sone economic clout.

    Enjoy it while it lasts.

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    1. Exactly, and within a decade or two, China will be banning Apple for silly things like doing business with the nation of Taiwan and stuff like that.

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  2. I think ZTE should not be banned. Ultimately, it means less competition and higher prices for the smartphone market. As a ZMAX Pro user, I appreciate that it has a high quality rear-facing camera and doesn't cost an arm and a leg. The video was as good as what was shot using my friend's iPhone 7+.

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    1. I'm sure the video was as good as the iPhone's in very optimal lighting. but once it gets a little dark, the cheap phones fall away, and only the very expensive ones have cameras that keep up.

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    2. You think that ZTE cameras are as good as iPhone cameras? Nice to meet you, Mr. Magoo!

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  3. It's all made in China (or Korea, Taiwan,etc) anyway. Why single out one company to pick on?

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  4. Other companies did not violate UN sanctions and sell $millions worth of comm equipment to the N. Koreans and Iran. They did not have Directors and other senior executives that were former military intel officers. They did not have Communist Party committees inside the company, or conduct "special projects" to help gather intel. When caught and fined, they did not break all the promises they made to hold Sr. Execs and others involved in breaking sanctions accountable. Instead they gave them bonuses.
    If it wasn't for the $2.5B that ZTE pays to Google for GMS and to Qualcomm for chips each year, they would still be banned.

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