About a year ago, ZTE pleaded guilty to violating U.S. sanctions against Iran and North Korea. Its deal with the U.S. government included penalties and fines totaling more than a billion dollars, but allowed it to continue doing business with U.S. suppliers.
On Monday, however, the U.S. Department of Commerce announced that ZTE had failed to follow the agreement’s terms. It accused the company of making false statements and failing to punish employees and senior management. As a result, the Department of Commerce slapped ZTE with a seven-year export restriction.