ZTE’s probation for selling US-made products to Iran and North Korea ends

ZTE’s probation in the United States is coming to an end following a Texas judge’s decision on Tuesday, according to a report by The Wall Street Journal. The Chinese telecommunications company had been under US government surveillance since pleading guilty to illegally selling US-made equipment to Iran and North Korea in 2017. ZTE faced a $1.2 fine billion dollars for violating US sanctions against both countries.

As the WSJ note, U.S. District Judge Ed Kinkeade decided not to punish ZTE for alleged visa fraud, which is the subject of a separate case currently pending in Georgia. Last March, a ZTE researcher and professor at the Georgia Institute of Technology was accused of abusing the visa system to bring Chinese nationals to the United States to work for ZTE. However, Kinkeade encouraged the government to take the necessary legal action against the company.

Ending probation could help ZTE bounce back after spending time on the U.S. economic blacklist in 2018 and replacing its top executives as a condition to resume trading. Despite the end of a five-year legal saga, this decision does not change the fact that US government officials are banned from using ZTE and China-based Huawei products, nor does it restore its threat status to national security. , which prohibits telecommunications providers from using government subsidies to purchase ZTE equipment. The Federal Communications Commission also plans to remove and replace ZTE and Huawei telecommunications equipment in an operation that will cost $5.6 billion.

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