United States government prohibits ZTE from buying hardware or software from US companies

ZTE China flag
ZTE is prohibited from purchasing products such as hardware or software from US companies. The reason is that they did not do what they had promised when they pleaded guilty to illegally sending devices from the United States to Iran and North Korea.

The US Department of Commerce said ZTE still gives bonuses to employees who ship illegally, although they say they will not. Not only that, of the 35 senior employees involved in the illegal activities, only 4 people were dismissed.

Now, ZTE issued a statement regarding the US decision. ZTE said it was trying to comply with US regulations and has spent a lot of resources to comply with export regulations.

"This prohibition will not only affect the survival and development of ZTE but also disrupt the business of all of ZTE's partners, including many US companies," ZTE said.

Further, ZTE says they may bring the matter to court to "protect the rights and interests of our company, our workers, and our shareholders and also to fulfill our obligations and responsibilities to our global customers, users, partners, and suppliers."

A leaked internal memo indicates that ZTE has made a team crisis to address the issue.

Meanwhile, the British National Cyber Security Center has issued a letter to telecom operators, warning them not to use equipment or services from ZTE on the grounds of national security concerns.

The regulatory body said one of the reasons they issued the letter was due to ZTE's response to US sanctions. Another reason is that they are concerned about "external interference" in their domestic systems from China.