Huawei and ZTE Hit Hard as U.S. That was about 20 percent of its total sales. A Senate committee wrote to Huawei’s founder to ask what the company knew about the vulnerabilities, and how it had been affected by them. Follow Raymond Zhong, Paul Mozur and Jack Nicas on Twitter: @zhonggg , @paulmozur and @jacknicas . The Chinese company paid $890 million in fines and penalties after it pleaded guilty last year to conspiring to violate U.S. sanctions by illegally shipping U.S. goods to Iran.
The action followed ZTE’s violation of an agreement reached after it was caught illegally shipping U.S. goods to Iran. At least one U.S. technology company said the ban would not affect its business with ZTE. Last month, U.S.-China relations began to splinter when President Trump leveled tariffs on up to $60 billion in imports , a move that came on the heels of aluminum and steel tariffs. ZTE has similarly cut its lobbying expenditures, from $860,000 in 2016 to $510,000 last year, according to ZTE filings.
Like other major tech companies, whether American or Chinese, Huawei has been caught in the crossfire as the Trump administration ratchets up efforts to stop China's high-tech ambitions. It is not clear whether he will be replaced. This was the sanction imposed by the US government after finding ZTE in violation of an earlier import ban against Iran and North Korea. That’s especially true when it comes to network technology, where it shares the stage with the likes of China, Korea, and Japan.