ZTE has been under sanctions since 2017 for allegedly selling US-made equipment to Iran and North Korea, resulting in the bans of selling ZTE products in the US. Both countries are under severe sanctions by the United States government over developing nuclear programs. As a result of violating sanctions against the two countries, ZTE has to pay $1.2 billion in fines. ZTE is not the only Chinese telecommunication company that has come under these sanctions. The US government has imposed them on other countries as well. Huawei for example, is a company that has suffered most from these restrictions. Of course, violating sanctions is not the only accusation against ZTE. The company is also dealing with a visa fraud case. The case is under review in Georgia and claims that a ZTE researcher and professor at the Georgia Institute of Technology has abused the US visa system to bring Chinese nationals to the US to work for the company. Since this is a separate case and is still under review, US District Judge Ed Kinkeade didn’t punish ZTE for alleged visa fraud. However, the company should stay accountable in court.
ZTE and other Chinese telecommunication companies are still a threat to US national security
ZTE has been on the US economic blacklist Since 2018, and eliminating the restrictions will allow the company to have a fresh start within the country. Of course, it should be noted that the attitude of US officials towards Chinese telecommunications companies is not very positive. Prompting the US government to ban officials from using Huawei or ZTE products. The purchase of telecommunications equipment from Chinese companies is currently banned for the United States telecommunications providers. The Federal Communications Commission also plans to replace the old ZTE and Huawei equipment used in the country’s telecommunications network. The replacement will cost about $ 5.6 billion. Most of the sanctions against Chinese telecom companies were imposed during Donald Trump’s presidency. Of course, Joe Biden has also imposed sanctions on Huawei, ZTE and other Chinese companies. The Chinese telecommunications companies are said to be cooperating with the Chinese government on espionage and censorship.
