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March 9, 2016

U.S. Slaps Chinese Tech Firm With Sanctions

Is the U.S. finally getting tough with Iran?

Is the U.S. finally getting tough with Iran? In an attempt to punish two upstart governments, the U.S. blacklisted Chinese company ZTE Corp because it broke the sanctions that prevented companies from doing business with Iran back in 2012. According to PC Mag the company has to jump through some regulatory hoops in order to get back on Uncle Sam’s good side. ZTE Corp makes inexpensive phones from some key parts they get from U.S. manufacturers, such as processors from American company Qualcomm.

Using some shell companies, ZTE Corp funneled some of those products to the Iranians. As The Wall Street Journal writes, this could be the start of a new policy in Washington where U.S. regulators go after international companies that have less-than-legal business practices. After all, in 2012, a House Intelligence Committee was trying to determine if ZTE Corp was somehow influenced by the Chinese government, acting as its proxy to funnel aid to Iran. “The move against ZTE is nonetheless welcome,” WSJ wrote, “not least as a signal that the U.S. will enforce what are left of the sanctions against Iran in the wake of the nuclear deal. Let’s hope this isn’t a one-time action.”

Looking at the timeline of this action, these sanctions do not spring forth because of the newly minted Iran nuclear deal, or any response to Iran’s recent missile tests. But it is heartening to know that somewhere in the federal government, some leaders are willing to check Iran and its allies.

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