The US government is going after another Chinese Android device maker. After shutting down Huawei’s carrier deals and retail partners, the government is now pursuing ZTE. The US Department of Commerce has banned US companies from selling parts and software to ZTE for seven years.
ZTE was caught violating US sanctions by illegally shipping telecommunications equipment to Iran and North Korea. The company then made things worse by “making false statements and obstructing justice, including through preventing disclosure to and affirmatively misleading the US Government,” according to the Department of Commerce. The company reached a settlement with the government agreeing to pay up to $1.2 billion in penalties and discipline the employees involved in the sale.