Archive for ZTE

U.S. Lawmakers Fail To Stop ZTE From Rebooting Itself

Posted in Commentary with tags on July 21, 2018 by itnerd

It’s official. ZTE is back in business thanks to the U.S. Senate deciding not to do anything to stop the Chinese telcom who has been accused of spying from rebooting itself after it’s recent near death experience:

Lawmakers from both parties have been at odds with President Donald Trump over his decision last week to lift his earlier ban on U.S. companies selling to ZTE, allowing China’s second-largest telecommunications equipment maker to resume business.

An amendment backed by two Republicans and two Democrats would have reinstated the sanctions but was stripped out of the must-pass defense policy bill, lawmakers said on Friday.

The change was made as lawmakers sought to hammer out differences between the Senate and House versions of the National Defense Authorization Act, which authorizes military spending but is generally used as a vehicle for a broad range of policy matters.

That’s unfortunate because ZTE was caught red handed doing a fair number of things it should not have been doing. Now it looks like almost but not quite business as usual. That’s a #Fail if I have ever seen one.

ZTE Is Back In Business In The US

Posted in Commentary with tags on July 16, 2018 by itnerd

The title says it all pretty much. All the Chinese Telco had to do is fork over $400 million in escrow, do a bunch of other things to make the US happy and boom! Business is on again. At least that’s the key point in a statement that the Commerce Department in the US says. But the question is will they stay in business. After all the company was thumbing its nose at sanctions aimed at North Korea and Iran. Plus their gear was thought to have backdoors in them. Which in turn led to the suggestion that nobody use their gear. Thus I have to wonder if  we’ll be back talking about this in six months time or less?

US Senate Votes To Ban ZTE…. AGAIN

Posted in Commentary with tags on June 19, 2018 by itnerd

The U.S. Senate has voted to reinstate a ban on ZTE that prevents the Chinese telecom company from buying U.S. components and using U.S. software. As The Verge notes, “it’s still not clear if the reversal will make it into law: it has to clear a conference with the House, and then avoid a veto from President Trump, who advocated for cutting a deal that would lift the ban.” Thus the games aren’t over just yet. But it’s clear that American politicians not named Donald Trump want to take down ZTE over violating sanctions on Iran and North Korea. Not to mention the general consensus that ZTE is a national security risk.

Let the games begin.


Senate Tries To Kill ZTE Deal That Trump Served Up

Posted in Commentary with tags on June 12, 2018 by itnerd

Remember that deal that President Trump came up with to give Chinese telecom ZTE a slap on the wrist? It didn’t go over so well with US Senators, who are now trying to kill the deal again in a novel way:

Senate leaders agreed Monday to include language in the annual defense spending bill that would reverse the Trump administration’s decision to save Chinese telecommunications company ZTE after it was caught violating the terms of a 2017 penalty agreement by making illegal sales to Iran and North Korea. The language will be part of an amendment in the 2019 National Defense Authorization Act, a $716 billion defense policy bill, H.R. 5515 (115).

If the Senate amendment becomes law, it would automatically reinstate the seven-year prohibition until Trump has certified to Congress that ZTE has met certain conditions. It also would ban all U.S. government agencies from purchasing or leasing telecommunications equipment and/or services from ZTE, a second Chinese telecommunications firm, Huawei, or any subsidiaries or affiliates of those two companies. The amendment language “prohibits the federal government from doing business with ZTE or Huawei or other Chinese telecom companies” and puts the company back on the sanctions list and “holds ZTE accountable for violating their previous commitment,” Cotton said.

That’s crafty. I’d be watching Twitter to see how the Twitter president reacts to this. Because I assume he’s going to have a meltdown when he finds out about this maneuver, and the fact that he can’t really stop it.

There’s A Deal Between The US & ZTE… Which Is A Slap On The Wrist To ZTE

Posted in Commentary with tags on June 7, 2018 by itnerd

Well, it seems that ZTE may live another day thanks to a deal that they cut with the US. Here’s what they have apparently agreed to:

China’s ZTE will pay a $1 billion penalty and will embed a U.S. appointed compliance team, terms that are similar to those President Trump discussed last month when he revealed that Chinese leaders had asked him to look into the matter. “At about 6 a.m. this morning, we executed a definitive agreement with ZTE,” Commerce Secretary Wilbur Ross told CNBC in an interview Thursday. “And that brings to a conclusion this phase of the development with them.” Trump asked the Commerce Department to investigate the restrictions on ZTE in April following a request from Chinese President Xi Jinping. Commerce imposed a seven-year ban after the company sold American-made products to Iran, a violation of U.S. sanctions.

In my humble opinion, ZTE really won’t suffer. ZTE will easily recoup the $1 billion in penalties just by the fact that its share price will certainly jump up with this news alone. So they come out the winners in all of this. And the US would have missed a glorious opportunity to send a message to those who wanted to copy and paste ZTE’s behaviour.

Trump Flip Flops Again As US Slaps ZTE With $1.3 Billion Fine

Posted in Commentary with tags on May 29, 2018 by itnerd

Well this is confusing. First the Trump Administration punished ZTE to the point that ZTE was going to shut down. Then President Trump says he’s going to save ZTE because too many jobs in China have been lost. Now, President Trump put this out there:

This is part of a larger effort in the form of a bill that goes like this:

  • ZTE will pay a $1.3 billion fine
  • ZTE will change its management and board
  • ZTE will provide “high-level security guarantees.” Whatever that means.
  • The bill will prohibit Chinese telcoms from doing business in the US.

My head is spinning from all this flip flopping. I’ll just stick around and watch to see if this changes again.

In An Epic Flip Flop, President Trump To Try And Save Jobs At ZTE

Posted in Commentary with tags on May 13, 2018 by itnerd

Multiple media outlets are reporting that US President Donald Trump is working to save jobs at Chinese phonemaker ZTE. This after the Trump Administration has been working to smack them around pretty hard. As is typical for Trump, he said this via a Tweet:

The only thing that could be responsible for this is the upcoming meeting between Trump and North Korean leader Kim Jon Un. He likely needs the Chinese to help him get the North Koreans on side with the rest of the planet. Like many things that this administration does, this could flip on a moments notice, thus we’ll have to see what happens next. Because anything could happen.

UPDATE: Another possibility is that ZTE is a bargaining chip in trade talks between the US and China.

ZTE Halts Operations Due To US Pressure

Posted in Commentary with tags on May 10, 2018 by itnerd

Weeks of the Trump administration in the US cranking up the pressure on Chinese phonemaker ZTE have resulted in ZTE shutting down. They employ 75000 people. The news popped up this morning via this PDF. Plus according to a report at The New York Times, manufacturing has been halted at ZTE’s plant in Shenzhen. This could be temporary as the company is still trying to play nice with the US. Or it could be the beginning of the end for them. It isn’t clear at this point. I’m going to guess that it’s the latter as US companies are banned from doing business with ZTE. And that likely includes access to the Android OS.

Now, Chinese phonemaker Huawei is in the same boat as ZTE. It will be interesting to see what happens to them.

Pentagon Bans Sales Of ZTE And Huawei Phones Over Spying Concerns

Posted in Commentary with tags , on May 2, 2018 by itnerd

Well, this war between the Trump administration and Chinese telcom companies got ratcheted up a couple of notches today with news that the Pentagon has banned saless of ZTE and Huawei phones:

The ban is based on the potential security threat the Pentagon believes the phones from the China-based companies may pose. It’s the latest move in an ongoing crackdown on the two companies by the US government, which is suspicious that they could hack into their phones and use them to spy for the Chinese government.

“Huawei and ZTE devices may pose an unacceptable risk to Department’s personnel, information and mission,” said Pentagon spokesman Major Dave Eastburn. “In light of this information, it was not prudent for the Department’s exchanges to continue selling them to DoD personnel.”

US military personnel are still allowed to buy ZTE and Huawei phones for personal use from elsewhere, although the Pentagon is currently deciding whether to issue a wider advisory about the purchase of phones by the two brands, said Eastburn. He said security reasons prevented him from going into the technical aspects of the potential threats.

One has to wonder what’s next? There’s really not much else that the Trump administration can do to these companies. But I am sure they’ll find something.

Report: ZTE May Lose Access To The Android OS

Posted in Commentary with tags on April 18, 2018 by itnerd

Things are really starting to look bleak for Chinese telcom companies. After the news came out that Huawei is pulling out of the US market, comes this report from Reuters that ZTE could lose access to the Android OS because of it running afoul of the US in the last few days. You see, Google which is an American company makes the Android OS, Google would have to stop serving the Android OS to ZTE to comply with the directive that came out a few days ago. That would be a huge problem to ZTE which is why they and Google are figuring out how to deal with reportedly. It will be interesting to see what happens next as ZTE isn’t exactly a small player in the smartphone market which means they have a lot to lose here.