US is trying to shoot herself on the foot, knowing Chinese they will make those components them self and even go beyond the requirement...US is only the loosing side in this war just it she was on trade war.
U.S. bans American companies from selling to Chinese phone maker ZTE
- Thread starter F-22Raptor
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the american components are easily replaced. just buy huawei chips for their mobile... for their networking equipment, there are plenty of companies in china and taiwan making fpga, dsp and optical components 
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ohmrlobalobayeh
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U.S. bans American companies from selling to Chinese phone maker ZTE
By Steve Stecklow and Karen Freifeld,Reuters 6 hours ago
By Steve Stecklow and Karen Freifeld
LONDON/NEW YORK (Reuters) - The U.S. Department of Commerce has banned American companies from selling components to Chinese telecom equipment maker ZTE Corp for seven years after breaking an agreement reached after it was caught illegally shipping goods to Iran, U.S. officials said on Monday.
The U.S. action, first reported by Reuters https://reut.rs/2H3p0Vl, could be devastating to ZTE since American companies are estimated to provide 25 percent to 30 percent of the components used in ZTE’s equipment, which includes smartphones and gear to build telecommunications networks.
The ban is the result of ZTE's failure to comply with an agreement with the U.S. government after it pleaded guilty last year in federal court in Texas to conspiring to violate U.S. sanctions by illegally shipping U.S. goods and technology to Iran, the Commerce Department said.
The Chinese company, which sells smartphones in the United States, paid $890 million in fines and penalties, with an additional penalty of $300 million that could be imposed.
"If the company is not able to resolve it, they may very well be put out of business by this. Many banks and companies even outside the U.S. are not going to want to deal with them," said Eric Hirschhorn, a former U.S. undersecretary of commerce who was heavily involved in the case.
As part of the agreement, Shenzhen-based ZTE Corp promised to dismiss four senior employees and discipline 35 others by either reducing their bonuses or reprimanding them, senior Commerce Department officials told Reuters. But the Chinese company admitted in March that while it had fired the four senior employees, it had not disciplined or reduced bonuses to the 35 others.
ZTE officials did not respond to requests for comment. The Commerce Department order quoted a ZTE official's letter admitting it "had not executed in full" some disciplinary measures and that there were "inaccuracies" in a 2017 letter. But, the Commerce order said, ZTE "argued that it would have been irrational for ZTE to knowingly or intentionally mislead the U.S. government in light of the seriousness of the suspended sanctions."
Under terms of the ban, U.S. companies cannot export prohibited goods, such as chip sets, directly to ZTE or via another country, beginning immediately.
Shares of big U.S. ZTE suppliers fell sharply on the Commerce ban. Optical networking equipment maker Acacia Communications Inc, which got 30 percent of its total 2017 revenue from ZTE, tumbled 35 percent, hitting a near two-year low. Acacia said it was suspending affected transactions and assessing the impact.
Shares of optical component companies including Lumentum Holdings Inc fell 8.9 percent and Finisar Corp dropped 4.0 percent. Oclaro Inc, which got 18 percent of its fiscal 2017 revenue from ZTE, lost 14.1 percent.
ZTE "provided information back to us basically admitting that they had made these false statements," said a senior department official. "That was in response to the U.S. asking for the information."
The ban on supplying ZTE comes two months after two Republican senators introduced legislation to block the U.S. government from buying or leasing telecommunications equipment from ZTE or its Chinese rival Huawei Technologies Co Ltd [HWT.UL], citing concern the companies would use their access to spy on U.S. officials.
"China does not play by our rules, and we must be vigilant against Chinese threats to both our economic security and national security," said Republican Representative Robert Pittenger after the Commerce announcement. Pittenger is sponsoring legislation that would strengthen the U.S. national security review process for foreign investments.
Meanwhile, 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.
'DEVASTATING'
Douglas Jacobson, an exports control lawyer who represents suppliers to ZTE, called the ban highly unusual and said it would severely affect the company.
“This will be devastating to the company, given their reliance on U.S. products and software,” said Jacobson. “It’s certainly going to make it very difficult for them to produce and will have a potentially significant short- and long-term negative impact on the company.”
ZTE has sold handset devices to U.S. mobile carriers AT&T Inc, T-Mobile US Inc and Sprint Corp. It has relied on U.S. companies including Qualcomm Inc, Microsoft Corp and Intel Corp for some components.
Shares of Taiwan's MediaTek Inc, which sells smartphone chips and competes with Qualcomm, were not trading when the announcement was made.
The U.S. action against ZTE is likely to further exacerbate current tensions between Washington and Beijing over trade. After the U.S. placed export restrictions on ZTE in 2016 for Iran sanctions violations, China’s Ministry of Commerce and Foreign Ministry criticized the decision.
A five-year federal investigation found last year that ZTE had conspired to evade U.S. embargoes by buying U.S. components, incorporating them into ZTE equipment and illegally shipping them to Iran.
ZTE, which devised elaborate schemes to hide the illegal activity, agreed to plead guilty after the Commerce Department took actions that threatened to cut off its global supply chain.
The U.S. government had allowed the company continued access to the U.S. market under the 2017 agreement.
The new restrictions stem from a Jan. 16 report by a U.S. monitor appointed by a federal judge in Texas who accepted the guilty plea in March 2017. Although Commerce Department officials would not discuss the report, they said the department followed up in February.
The U.S. government’s investigation into sanctions violations by ZTE followed reports by Reuters in 2012 https://reut.rs/2H3p0Vl that the company had signed contracts to ship millions of dollars’ worth of hardware and software from some of the best known U.S. technology companies to Iran’s largest telecoms carrier.
(Read the Reuters report that exposed the practice: https://reut.rs/2H3p0Vl)
U.S. bans American companies from selling to Chinese phone maker ZTE
By Steve Stecklow and Karen Freifeld,Reuters 6 hours ago - Reactions
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By Steve Stecklow and Karen Freifeld
LONDON/NEW YORK (Reuters) - The U.S. Department of Commerce has banned American companies from selling components to Chinese telecom equipment maker ZTE Corp for seven years after breaking an agreement reached after it was caught illegally shipping goods to Iran, U.S. officials said on Monday.
The U.S. action, first reported by Reuters https://reut.rs/2H3p0Vl, could be devastating to ZTE since American companies are estimated to provide 25 percent to 30 percent of the components used in ZTE’s equipment, which includes smartphones and gear to build telecommunications networks.
The ban is the result of ZTE's failure to comply with an agreement with the U.S. government after it pleaded guilty last year in federal court in Texas to conspiring to violate U.S. sanctions by illegally shipping U.S. goods and technology to Iran, the Commerce Department said.
The Chinese company, which sells smartphones in the United States, paid $890 million in fines and penalties, with an additional penalty of $300 million that could be imposed.
"If the company is not able to resolve it, they may very well be put out of business by this. Many banks and companies even outside the U.S. are not going to want to deal with them," said Eric Hirschhorn, a former U.S. undersecretary of commerce who was heavily involved in the case.
As part of the agreement, Shenzhen-based ZTE Corp promised to dismiss four senior employees and discipline 35 others by either reducing their bonuses or reprimanding them, senior Commerce Department officials told Reuters. But the Chinese company admitted in March that while it had fired the four senior employees, it had not disciplined or reduced bonuses to the 35 others.
ZTE officials did not respond to requests for comment. The Commerce Department order quoted a ZTE official's letter admitting it "had not executed in full" some disciplinary measures and that there were "inaccuracies" in a 2017 letter. But, the Commerce order said, ZTE "argued that it would have been irrational for ZTE to knowingly or intentionally mislead the U.S. government in light of the seriousness of the suspended sanctions."
Under terms of the ban, U.S. companies cannot export prohibited goods, such as chip sets, directly to ZTE or via another country, beginning immediately.
Shares of big U.S. ZTE suppliers fell sharply on the Commerce ban. Optical networking equipment maker Acacia Communications Inc, which got 30 percent of its total 2017 revenue from ZTE, tumbled 35 percent, hitting a near two-year low. Acacia said it was suspending affected transactions and assessing the impact.
Shares of optical component companies including Lumentum Holdings Inc fell 8.9 percent and Finisar Corp dropped 4.0 percent. Oclaro Inc, which got 18 percent of its fiscal 2017 revenue from ZTE, lost 14.1 percent.
ZTE "provided information back to us basically admitting that they had made these false statements," said a senior department official. "That was in response to the U.S. asking for the information."
The ban on supplying ZTE comes two months after two Republican senators introduced legislation to block the U.S. government from buying or leasing telecommunications equipment from ZTE or its Chinese rival Huawei Technologies Co Ltd [HWT.UL], citing concern the companies would use their access to spy on U.S. officials.
"China does not play by our rules, and we must be vigilant against Chinese threats to both our economic security and national security," said Republican Representative Robert Pittenger after the Commerce announcement. Pittenger is sponsoring legislation that would strengthen the U.S. national security review process for foreign investments.
Meanwhile, 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.
'DEVASTATING'
Douglas Jacobson, an exports control lawyer who represents suppliers to ZTE, called the ban highly unusual and said it would severely affect the company.
“This will be devastating to the company, given their reliance on U.S. products and software,” said Jacobson. “It’s certainly going to make it very difficult for them to produce and will have a potentially significant short- and long-term negative impact on the company.”
ZTE has sold handset devices to U.S. mobile carriers AT&T Inc, T-Mobile US Inc and Sprint Corp. It has relied on U.S. companies including Qualcomm Inc, Microsoft Corp and Intel Corp for some components.
Shares of Taiwan's MediaTek Inc, which sells smartphone chips and competes with Qualcomm, were not trading when the announcement was made.
The U.S. action against ZTE is likely to further exacerbate current tensions between Washington and Beijing over trade. After the U.S. placed export restrictions on ZTE in 2016 for Iran sanctions violations, China’s Ministry of Commerce and Foreign Ministry criticized the decision.
A five-year federal investigation found last year that ZTE had conspired to evade U.S. embargoes by buying U.S. components, incorporating them into ZTE equipment and illegally shipping them to Iran.
ZTE, which devised elaborate schemes to hide the illegal activity, agreed to plead guilty after the Commerce Department took actions that threatened to cut off its global supply chain.
The U.S. government had allowed the company continued access to the U.S. market under the 2017 agreement.
The new restrictions stem from a Jan. 16 report by a U.S. monitor appointed by a federal judge in Texas who accepted the guilty plea in March 2017. Although Commerce Department officials would not discuss the report, they said the department followed up in February.
The U.S. government’s investigation into sanctions violations by ZTE followed reports by Reuters in 2012 https://reut.rs/2H3p0Vl that the company had signed contracts to ship millions of dollars’ worth of hardware and software from some of the best known U.S. technology companies to Iran’s largest telecoms carrier.
(Read the Reuters report that exposed the practice: https://reut.rs/2H3p0Vl)
Soon it will be Chinese chips. China will banned US chips and now is a good opportunity to hammer the final nail.
https://www.theverge.com/2018/2/25/17050296/huawei-balong-5g01-chip-5g-networks-tech-mwc-2018
https://www.google.com/amp/s/www.cnbc.com/amp/2018/02/26/xiaomi-doing-a-lot-of-research-on-a-i-chips-for-smartphones.html
China will take revenge by banning all Hollywood movies in China. See who hurts who. China will fully download all Hollywood movies and ask all citizen stay at home to watch latest hollywoood movie. Not giving a single cent back to American while Chinese still continue enjoy the fruits.
https://www.google.com/amp/s/m.economictimes.com/magazines/panache/china-to-surpass-hollywood-and-bollywood-aims-to-become-worlds-largest-film-market-by-2020/amp_articleshow/61821928.cms
grandmaster
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I think the real reason behind is ZTE together with Huawei are two Chinese companies file many patents. The US will use every excuse and method to kill Chinese innovative companies. This is a lesson for Chinese high tech companies is to avoid US market and always find alternative to US components. China government may invest more money and incentive policies in R&D to scare the US more.they just throwing tantrum, because china is not approving qualcomm takeover of nxp
sweetgrape
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Thank you, good move.
All What USA do to China, just push China investing more money on our own HI-TECH, develop faster. Biggest market, smartest and most diligent race, money.... what we lack of? pressure.
Just one thing I think Chinese and China should do, limit American companies and products development in China, reduce the share they take gradually, develop the replacement for them.
All What USA do to China, just push China investing more money on our own HI-TECH, develop faster. Biggest market, smartest and most diligent race, money.... what we lack of? pressure.
Just one thing I think Chinese and China should do, limit American companies and products development in China, reduce the share they take gradually, develop the replacement for them.
timmy_area51
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it's because iran . ZTE and huwaei both work in iran. i can tell
Jlaw
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They should but your government is openingThank you, good move.
All What USA do to China, just push China investing more money on our own HI-TECH, develop faster. Biggest market, smartest and most diligent race, money.... what we lack of? pressure.
Just one thing I think Chinese and China should do, limit American companies and products development in China, reduce the share they take gradually, develop the replacement for them.
Up while Murica putting brakes on Chinese companies. Soon no more joint venture between foreign and Chinese company as a requirement for investing in China. Sometimes I wonder if Xi is really a double agent working for Murica.
antonius123
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What are the subttitutes from china?
For processor ZTE could buy from hisilicon/kirin i think
For processor ZTE could buy from hisilicon/kirin i think
Kai Liu
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Put two false flags won't make you an American... At least show your skin like a genius did some time ago...
https://defence.pk/pdf/threads/chin...o-do-with-genetic.547961/page-3#post-10314640
-----------------------------
I wish america impose even more embargoes, like they did to their arms exports...
Now we have everything...
hisilicon makes both network and mobile processors. kirin chips are integrateted with communication chips owned by huawei. the best choice for zte. rockchip, mediatek and samsung are good too.
anlogic (fpga)
GOWIN (fpga)
deePhi Tech (mobile ai, fpga)
horizon robotics (mobile ai, fpga)
cambricon (mobile ai, fpga)
bitmain (fpga)
xi'an intelligence iilicon tech (fpga)
intenginetech
hua Xia GPT (cpu, dsp, gpu and ai accelerators)
NUDT (they make DSP coprocessors in tianhe-2A supercomputer and the next exascale tianhe system)
antonius123
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they definitely can compete in technology. some of 'em are rising star tech unicorns. the bad news is i don't think they can help zte right now, because those guys are brand new startups. they need time to tweak their chips and ask tsmc or umc to build 'em. tsmc doesn't make chips for anyone, unless in large volume and come back to em again and again to order more from em. that shit takes time.
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looks like zte and huawei already prepared for this for optical components
last year article
--
Chinese systems houses engaging with alternative component, subsystem
sources: LightCounting
December 21, 2017
Author Stephen Hardy
Editorial Director and Associate Publisher
Several Western component and subsystems vendors have cited reduced demand from Chinese systems houses such as Huawei and ZTE for revenue declines in 2017. One reason for the slowdown is the fact that these systems houses have begun looking for more local optical technology sources, LightCounting Founder and CEO Vladimir Kozlov reported during a webcast December 20.
Kozlov noted that, in addition to doing more development work in-house (particularly in the case of Huawei), the two Chinese systems vendors have begun to work more closely with Chinese companies such as Accelink, Hisense, and HiSilicon as well as Japanese vendors such as Sumitomo. One reason for the change could be ZTE's experience when it ran afoul of U.S. export restrictions. The U.S. Department of Commerce charged that the company had sold systems containing U.S. components to Iran between 2010 and 2016; Iran was under a U.S. technology export embargo at the time. ZTE settled the charges this past March and paid a fine of $1.19 billion (see "ZTE admits guilt, settles export squabble"). However, it faced the possibility of having its access to U.S. component technology shut off, which led it to explore alternatives.
Thus, while Kozlov expects Huawei and ZTE to pick up purchases of optical components and subsystems in 2018 as their systems sales improve and component inventories dwindle, Western firms (particularly in the U.S.) may not see their Chinese orders return to previous levels. Overall, Kozlov expects 2017 optics sales to be flat versus 2016 at approximately $7 billion; he predicted 2018 revenues will exceed $8 billion.
Much of this growth will derive from internet content providers and other mega data center operators, whose purchases of optical technology are beginning to rival those of traditional service providers, Kozlov remarked (see "Third quarter 2017 follows year-long theme for optical communications: LightCounting"). He noted that Microsoft's Quincy, WA, campus features six data centers with 1-Tbps connectivity among them. Should other operators require similar connectivity, particularly within the context of an evolution toward distributed data centers and edge data center construction, demand for high-speed optical connectivity should remain robust.
One key for both optical component/subsystem vendors and their systems provider customers is pricing. Kozlov noted that telecom equipment sales, measured in 100-Gbps port counts, rose in 2017. But 100G price declines wiped out any revenue gains such growth should have created. Telecom equipment sales revenues appear set to decline this year, he stated.
last year article
--
Chinese systems houses engaging with alternative component, subsystem
sources: LightCounting
December 21, 2017
Author Stephen Hardy
Editorial Director and Associate Publisher
Several Western component and subsystems vendors have cited reduced demand from Chinese systems houses such as Huawei and ZTE for revenue declines in 2017. One reason for the slowdown is the fact that these systems houses have begun looking for more local optical technology sources, LightCounting Founder and CEO Vladimir Kozlov reported during a webcast December 20.
Kozlov noted that, in addition to doing more development work in-house (particularly in the case of Huawei), the two Chinese systems vendors have begun to work more closely with Chinese companies such as Accelink, Hisense, and HiSilicon as well as Japanese vendors such as Sumitomo. One reason for the change could be ZTE's experience when it ran afoul of U.S. export restrictions. The U.S. Department of Commerce charged that the company had sold systems containing U.S. components to Iran between 2010 and 2016; Iran was under a U.S. technology export embargo at the time. ZTE settled the charges this past March and paid a fine of $1.19 billion (see "ZTE admits guilt, settles export squabble"). However, it faced the possibility of having its access to U.S. component technology shut off, which led it to explore alternatives.
Thus, while Kozlov expects Huawei and ZTE to pick up purchases of optical components and subsystems in 2018 as their systems sales improve and component inventories dwindle, Western firms (particularly in the U.S.) may not see their Chinese orders return to previous levels. Overall, Kozlov expects 2017 optics sales to be flat versus 2016 at approximately $7 billion; he predicted 2018 revenues will exceed $8 billion.
Much of this growth will derive from internet content providers and other mega data center operators, whose purchases of optical technology are beginning to rival those of traditional service providers, Kozlov remarked (see "Third quarter 2017 follows year-long theme for optical communications: LightCounting"). He noted that Microsoft's Quincy, WA, campus features six data centers with 1-Tbps connectivity among them. Should other operators require similar connectivity, particularly within the context of an evolution toward distributed data centers and edge data center construction, demand for high-speed optical connectivity should remain robust.
One key for both optical component/subsystem vendors and their systems provider customers is pricing. Kozlov noted that telecom equipment sales, measured in 100-Gbps port counts, rose in 2017. But 100G price declines wiped out any revenue gains such growth should have created. Telecom equipment sales revenues appear set to decline this year, he stated.
Code:
http://www.lightwaveonline.com/articles/2017/12/chinese-systems-houses-engaging-with-alternative-component-subsystem-sources-lightcounting.html
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