United States companies suffer amid punitive ban against ZTE

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The U.S. Justice Department has opened an investigation into suspected violations of Iran sanctions by China's Huawei Technologies, U.S. media reported on April 25. The U.S. also has taken actions aimed at reducing access to the U.S.by ZTE and Chinese tech company Huawei Technologies Co Ltd amid allegations the companies could be using their technology to spy on Americans.

"ZTE made false statements to the U.S. Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation", said Secretary of Commerce Wilbur L. Ross earlier this month.

Huawei, the world's largest maker of telecommunications network equipment and the No 3 smartphone supplier, said it complies with "all applicable laws and regulations where it operates, including the applicable export control and sanction laws and regulations of the UN, US and European Union". That includes chipsets from Qualcomm, and possibly even Android itself - two items at the core of ZTE's smartphone business.

Following a somewhat gloomy outlook from Apple's main supplier of semiconductors, Taiwan Semiconductor Manufacturing Co., markets are also losing confidence in Chinese hardware makers.

Rain chances this evening, cooler weather and sunshine this weekend
Highs on Thursday afternoon should be well into the 50s, if not the lower 60s by the afternoon. Our best chances for rain will be later this afternoon and into the evening commute.

In Beijing, foreign ministry spokeswoman Hua Chunying said China opposed countries imposing their own laws on others when asked whether Huawei violated United States sanctions related to Iran. China doesn't actually have any sanctions on the country, and shipping Chinese technology would not directly violate United States sanctions. ZTE, the other Chinese company being probed by U.S. authorities, had said that the investigation could threaten its survival in the US. Throw in the fact that ZTE continued to obstruct investigations during the probationary period, and it should come as no surprise that the Department of Commerce came down hard on the company. January started with the news that the USA government had intervened to kill deals that Huawei was making with Verizon and AT&T, which would have helped the Chinese company sell its flagship Android phones in the US.

Since April 2016, ZTE Corporation (hereinafter referred to as "ZTE") has continuously reflected on lessons from its past experience in Export Control Compliance and has attached great importance to Export Control Compliance.

In a separate case, Washington barred ZTE Corp., another Chinese tech company, from exporting US technology in a case over exports to Iran and North Korea.

The mobile phone and telecoms company said its shares will remain suspended on the Hong Kong exchange.