Commerce Blocks China's ZTE From Exporting Tech From US

Optical Stocks Under Pressure After US Bans Sales To ZTE

Optical Stocks Under Pressure After US Bans Sales To ZTE

The false statements allegedly occurred while the USA was investigating ZTE exports to Iran and North Korea, a bit of business which landed the firm in hot water to start with, collecting a $1.2 billion fine in the process, but buying U.S. components, incorporating them into ZTE equipment and shipping them to the countries was not something which was accounted for in the original punishment.

Shares of big U.S. ZTE suppliers fell sharply on the Commerce ban.

According to the report from Reuters, ZTE has often used components from USA -based companies like Qualcomm, Intel, and Microsoft in its products. Acacia Communications Inc. shares fell by 34.7%, a drop influenced by the fact that almost a third of the company's 2017 revenue came from ZTE.

ZTE "provided information back to us basically admitting that they had made these false statements", said a senior department official.

"We can't trust what they are telling us is truthful", the official said.

ZTE didn't respond to calls seeking comment that were made after business hours in China.

The ban on supplying ZTE comes two months after two Republican Senators introduced legislation to block the US government from buying or leasing telecommunications equipment from ZTE or its Chinese rival Huawei Technologies Co Ltd, citing concern the companies would use their access to spy on USA officials. The majority of the ZTE smartphones in the USA are sold by the carriers.

Other smaller or less-well-known American companies have been negatively affected by the ban.

"This will be devastating to the company, given their reliance on US products and software", said Jacobson.

The U.S. government recently put pressure on telecommunications companies to stop buying Huawei networking equipment and consumer electronics products.

While ZTE can continue to sell its products in the United States, being unable to use parts from Qualcomm, Intel, and other US companies could prove to be devastating to the firm.

This is a regulatory action and is unrelated to any ongoing trade-related actions.

"ZTE misled the Department of Commerce". The official, speaking on the condition of anonymity, said the timing of the ZTE action was unfortunate because it could seem related to US steps to stop alleged theft of intellectual property. A few years back, both Huawei and ZTE came under scrutiny after the U.S government raised concerns over the national security.

The U.S. government had allowed the company continued access to the U.S. market under the 2017 agreement.

Recommended News

  • Five acquitted in Mecca Masjid bomb blast case

    Five acquitted in Mecca Masjid bomb blast case

    Of the ten, only five of them - Gupta, Sharma , Aseemanand, Rateshwar, and Chowdhary - were arrested and faced trial in the case. The blast took place 11 years ago on 18 May, 2007 during the Friday prayers near the Charminar monument in Hyderabad .

    "Kingdom Hearts III" Tries Some Mini-Games in Classic Kingdom Trailer

    It all went down at the Kingdom Hearts Union χ [Cross ] event, titled "Dandelion Meeting", that celebrates the mobile game. Kingdom Hearts III is still lacking a precise release date, although we've already been informed about the launch in 2018.
    'The Walking Dead' finale mercifully brings Negan war to an end

    'The Walking Dead' finale mercifully brings Negan war to an end

    However it goes, we're hoping for Maggie's story to get bigger and better as it goes on, even if it means Rick's downfall. Not right away, of course, but in the near future things are going to get awkward between Rick and Maggie.
  • Destiny's Child reunites at Coachella

    Destiny's Child reunites at Coachella

    But at the core of her exhilarating performance was the marching band, which, like the rest of her set, was true to detail. If you'll watch the video, you'll witness that she managed the situation with precision.

    Acts in Response on Unparallel Developments: Twenty-First Century Fox, Inc

    If we checked the overall image of stock during recent quarter then we found that stock performance is trading down -1.46%. Looking at the big picture from the data above, the average analyst rating for Twenty-First Century Fox, Inc .is 2.50.
    Inmates Killed in 'Incident' at South Caroling Prison

    Inmates Killed in 'Incident' at South Caroling Prison

    Lee County Fire/Rescue said ambulances from at least seven jurisdictions lined up outside the prison to tend to the wounded. A sign in front of the Lee Correctional Institution in Bishopville, South Carolina, is seen in this image from Google Maps.
  • Humanitarian grounds justify Syria attack, says Theresa May

    Humanitarian grounds justify Syria attack, says Theresa May

    French President Emmanuel Macron said the strikes had been limited so far to Syria's chemical weapons facilities. She will say: "Let me be absolutely clear: we have acted because it is in our national interest to do so".
    Broncos releasing CJ Anderson

    Broncos releasing CJ Anderson

    Anderson put together five solid seasons in Denver but never truly cemented himself as a reliable featured back. He also added in 28 receptions for 224 receiving yards and four total touchdowns.
    Florida Woman Nabbed for Giving Child Pot and Meth

    Florida Woman Nabbed for Giving Child Pot and Meth

    She had been working with infants at the time of her arrest and had been employed full time at the facility for three years. Heinz told police she had a history of drug use including heroin and opioid pills, reported KTVQ.
  • More than 200 Million Eggs Recalled over Potential Salmonella Contamination

    More than 200 Million Eggs Recalled over Potential Salmonella Contamination

    Rose Acre Farms voluntarily recalled 206,749,248 eggs for potential of contamination with Salmonella Braenderup , the U.S. Hens that are infected with salmonella do not get sick, so there's no way to tell if a chicken is infected.
    Hasay out of Boston Marathon with heel injury

    Hasay out of Boston Marathon with heel injury

    With AP Photos.Runners are arriving in Hopkinton and trying to stay dry as they await the start of the Boston Marathon . Henry Richard advocated those that listening to follow Martin's concept to "choose kindness and perform more".
    Comey says Trump morally unfit to be president

    Comey says Trump morally unfit to be president

    Trump has said he fired Comey because of his handling of the FBI's investigation into Clinton's email practices. Comey detail about a "dossier" containing raw intelligence on Trump's connections with Russians.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.