In my first book I talked about two companies that the U.S. was watching, Huawei and ZTE. After five years, we find out they are still being watched for good reason.
ZTE is about to receive sanctions which will limit its ability to buy technology in the U.S. [ Juro Osawa and Eva Dou, U.S. to Place Trade Restrictions on China's ZTE, The Wall Street Journal, 7 March 2016 ] The Commerce Department which enforces these sanctions said ZTE acted "contrary to the national security and foreign policy interests of the United States”.
"Authorities allege ZTE broke export rules by supplying Iran with U.S.-made high-tech goods and said they uncovered plans by ZTE to use a series of shell companies 'to illicitly reexport controlled items to Iran in violation of U.S. export control laws.'"
The Commerce Department published internal documents of ZTE Corp marked "Top Secret, Highly Confidential" to substantiate its claim that ZTE knew what it was doing when it funneled hardware and software from Microsoft, Oracle, IBM, and Dell to Iran. The first document is well worth reading. It clearly shows ZTE knew what the export rules required, and knew there would be trouble if they were discovered trying to skirt them. Group Z described in this document is North Korea, Vietnam and Cuba. ZTE at the time of their writing, was exporting U.S. produced products to Iran, Sudan, North Korea, Syria and Cuba. They outline the methods used to avoid detection in all of these countries.
http://www.bis.doc.gov/index.php/about-bis/newsroom
This may prove difficult for ZTE which is a large cell phone supplier in the U.S.
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