According to U.S. government officers, the U.S. Department of Commerce has banned U.S. companies from selling components and parts to ZTE for a period of 7 years in violation of the U.S. government’s sanctions ban.
In March last year, ZTE came to an agreement with the U.S. government, which admitted its guilty and agreed to pay a total fine of 892 million U.S. dollars. The reason for the punishment is that ZTE sold communications equipment to those countries such as Iran, which violated the relevant US export ban.
In addition, the U.S. Department of Commerce’s Bureau of Industry and Security also imposed a fine of 300 million U.S. dollars on ZTE. This part of the fine can be suspended, which is mainly depending on ZTE’s implementation of the agreement in the next seven years.
As part of the agreement, ZTE also promised to dismiss four senior employees and penalized other relevant 35 employees, including reducing bonuses or giving warnings, said by a senior official in the US Department of Commerce.
However, ZTE said that it only laid off 4 senior employees but didn’t punish other 35 employees.