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ZTE violates US probation, Dallas judge rules

Image Credit: Flickr / Kārlis Dambrāns

Chinese telecoms manufacturing giant ZTE has violated the probation imposed on by the US Commerce Department, a US judge has ruled.

U.S. District Judge Ed Kinkeade in Dallas  has said that ZTE has done exactly the same thing it was penalised for back in April. According to the Commerce Department, ZTE lied about disciplining 35 employees that were involved in shipping US-made goods and parts to countries under US embargo, Iran and North Korea.

As a result, the monitor that was appointed by the US District judge, to oversee ZTE's operations, will have its work extended by 2022. Originally, the monitorship was scheduled to end in 2020.

ZTE almost went out of business earlier this year, when the US government banned its hardware manufacturers from doing business with the Chinese company. The ban was put in place after it was discovered that ZTE violated an agreement it had with the States and that it shipped its products, made with US-built parts, to countries under US embargo.

Following a few months of back-and-forth, the ban was finally lifted, but ZTE agreed to pay a $1 billion fine, leave $400 million in escrow and replace its entire managerial staff.

There have also been talks about China buying more agricultural products from the US as part of the deal, but that part was not mentioned in the final agreement.

Image Credit: Flickr / Kārlis Dambrāns