ZTE pose a threat to United Kingdom national security warns the NCSC

ZTE pose a threat to United Kingdom national security warns the NCSC

Four senior managers and 35 members of staff were supposed to either be shown the door or had their bonuses removed, though the firm apparently paid the full amount to the nefarious employees further infuriating Ross. The official, speaking on the condition of anonymity, said the timing of the ZTE action was unfortunate because it could seem related to US steps to stop alleged theft of intellectual property.

Shares of optical companies including Lumentum Holdings Inc fell 6.6 percent and Finisar Corp dropped 2.7 percent. Among its biggest customers is ZTE, which accounted for 30 percent of its entire revenue in 2017. "That was in response to the USA asking for the information".

ZTE officials did not immediately respond to requests for comment.

The NCSC's letter said it would be "impossible" to manage risks in view of the threat to the sector if ZTE equipment was deployed in the UK. In a letter seen by the FT, Ian Levy, Technical Director of The National Cyber Security Centre in the United Kingdom, has written to United Kingdom telcos, ZTE and Ofcom warning of the dangers of using ZTE products and services. The majority of the ZTE smartphones in the United States are sold by the carriers.

"This will be devastating to the company, given their reliance on US products and software", said Jacobson. With the ban, none of the carriers are allowed to sell the ZTE smartphones. For starters, it prevents the ZTE from buying hardware components from companies like Qualcomm and Intel.

The Department of Commerce has now learned that ZTE made false statements to the US government during the 2016 settlement negotiations as well as the 2017 probationary period.

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.

"ZTE made false statements to the U.S. Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation." said Secretary of Commerce Ross.

The new restrictions stem from a January 16 report by a US monitor appointed by a federal judge in Texas who accepted the guilty plea in March 2017. Despite the fact that it's a company based in China, ZTE was found to be selling technology from the Iran through multiple shell companies.

Chinese telecoms equipment group ZTE Corp hit back in February against concerns from USA lawmakers that it is a vehicle for Chinese espionage, saying it was a trusted partner of its USA customers.