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by beat
2951 days ago
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"Enforcement" short of the death of the company has not worked before. In the criminal justice system, if you are out on probation after committing a crime and then commit the same crime, you go right back to prison, for longer this time. They've repeated their crime while on probation, and thus get a stiffer sentence. Besides the libertarian nonsense of "if you don't like ZTE products don't buy them"... well, one of the things they're doing we don't like is violating export bans to Iran and North Korea. For another, as long as they're manufacturing, their products can just get rebranded through a couple of shell companies and wind up in the US anyway. I am unclear why you think it's so important to not hurt them. |
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By being overly draconian you generate a ground swell of ill will against US suppliers. Everyone in China will be looking to replace their US components as soon as it is feasible.
For what is its worth, ZTE actually self reported the recent faux pas that led to the reimposition of the sanction. Even if they don't get any credit for self-reporting it shows that the threat of intrusive audits works. ZTE right now is a lot more under the US government thumb than any other Chinese tech company. If anything Chinese government should just let the corporate form die to end the humiliation. US on the other hand, by being the executioner, only ensures that ZTE will be replaced by another Chinese player not subject to the same supervision.