The ruling came from the U.S. Department of Commerce after it found that the firm failed to discipline its employees that were involved in an incident from the previous year regarding its actions of subverting U.S. sanctions in Iran.
It is unacceptable that [the Bureau of Industry and Security under the Department of Commerce] insists on unfairly imposing the most severe penalty on ZTE even before the completion of investigation of facts, ignoring the continuous diligent work of ZTE and the progress we have made on export compliance and disregarding the fact that (1) ZTE self-identified the issues in the correspondence and self-reported by ZTE immediately; (2) the Company has taken measures against the employees who might have been responsible for this incident; (3) corrective measures has been taken immediately; and (4) a prestigious USA law firm has been engaged to conduct independent investigation. U.S. companies are barred from selling technology to state-owned ZTE for seven years.
Gao didn't respond to a reporter's question about whether the review was influenced by the dispute with Trump or Washington's decision to penalize a Chinese tech company this week over sales to Iran and North Korea.
Corrective measures has (sic) been taken immediately.
An official of ZTE said that the ban will jeopardize the future of the company and will also cause a damage to ZTE partners which are mostly American companies.
FIFA probes Russian federation over racist chants
Russian Federation was previously charged with racist behaviour by fans at the last two European Championships. However, Ticombo said it was not breaking the law by trading tickets and neither were fans.
"ZTE will not give up its efforts to solve problems through communication and dialogue". The company also promised that it will protect its interest by all legal means.
It said: "It is unacceptable that BIS insists on unfairly imposing the most severe penalty on ZTE even before the completion of investigation of facts, ignoring the continuous diligent work of ZTE and the progress we have made on export compliance". "Within ZTE, compliance is regarded as the foundation and bottom-line of the company's operation", it said.
The company, headquartered in the southern city of Shenzhen, operates in 160 countries and sells switching gear used by phone and Internet companies, handsets and other products. The company is set to pay a $1.19 billion fine.
ZTE and Huawei have been shut out of the United States market for switching gear since a congressional panel in 2012 labelled them security threats. ZTE could lose access to Snapdragon chipsets and the Android OS following the implementation of the export ban.
"If ZTE can not have these Google applications, ZTE phones will be a lot less attractive", said Kaur. Both Qualcomm and its rival, Intel, are now banned from supplying ZTE for seven years.