China telecoms firm ZTE Corp has been hit with a 7-year ban for a sanctions breach by the US government.
That's because it's said to have broken the agreement signed with Washington after pleading guilty to breaking different sanctions by selling equipment to North Korea and Iran.
The Department of Commerce has now determined that ZTE has breached the settlement agreement by giving false statements and failing to enact disciplinary actions to parties originally identified as responsible for engaging in the illegal conduct. This could have a devastating impact on the company given that USA companies are believed to account for 25 to 30 percent of ZTE's components to build phones and networks. Likewise, the ban also means that that the maker of the popular Snapdragon processor is out a revenue stream for the next seven years.
Piling further pressure on ZTE, Britain's main cyber security agency said on Monday it has written to organizations in the UK's telecommunications sector warning about using services or equipment from ZTE.
Starbucks chief to apologise
In an nearly 7-minute clip, the commissioner said a trespassing and disturbance matter led to Starbucks employees calling 911. The two men were released , Ross said , after officers learned Starbucks was "no longer interested" in prosecuting them.
"This will be devastating to the company, given their reliance on USA products and software", Douglas Jacobson, an exports control lawyer who represents suppliers to ZTE, said of the ban on supplying the company. It said the Shenzhen-based company has cooperated with hundreds of U.S. companies and contributed to the country's job creation.
Huawei phones are already effectively shut out of the USA market, but ZTE has made inroads.
It continued: "The Ministry of Commerce will pay close attention to the progress of the situation and stands ready to take necessary measures to safeguard the legitimate rights and interests of Chinese companies".
They downgraded ZTE shares to underperform and cut their price target on its stock by more than half.
Tax deadline: Things to know about filing taxes
You can go to your local tax preparer, submit it through an online tax preparer, or submit it through the IRS website . Officials say a tax extension is an extension of time to file, not an extension of time to pay.
CHINESE TELECOMS OUTFIT ZTE has halted trading after was suspended from the United Kingdom and cut off from U.S. suppliers. The company has been banking on sales of next-generation 5G network equipment to become its new engine for growth, as 4G mobile operators start to upgrade their networks and 5G-enabled smartphones and tablets are expected to soon hit the market.
Having suffered a loss of 767.8 million Chinese yuan ($122 million) in 2016, ZTE bounced back with a net profit of more than RMB6.7 billion ($1.1 billion) a year ago, with sales up 7.5%, to RMB108.8 billion ($17.3 billion).
For ZTE itself, the latest USA action means one of the world's top makers of smartphones and communications gear will no longer be able to buy technology from American suppliers, including components central to its products. He previously served as president at ZTE for two three-year terms, from 2004 to 2010.
"No road that leads to a bright future is straight".
CELTICS 113, BUCKS 107: C's win it again in OT
The C's shot a measly 20 percent from the field in the second, while the Bucks took full advantage of their struggles. But Horford was steady again after being fouled, connecting on two more from the line with 15.2 seconds left.
Douglas Jacobson, an exports control lawyer who represents suppliers to ZTE, called the ban highly unusual and said it would severely affect the company.