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They could use proxy companies, but ZTE risk getting even further punishment from the US Gov if they were caught again, possibly exiting US entirely. Doesn't m
by yonkshi 9y ago
They could use proxy companies, but ZTE risk getting even further punishment from the US Gov if they were caught again, possibly exiting US entirely.
Doesn't matter how many proxies they use, it takes one tear down to see if they used any US based components.
Although, I wonder, had they used a proxy company when they were doing business with N.Korea and Iran, it probably would've been much harder to prosecute in the US. Perhaps their upper management didn't care enough at the time.
- jacquesm 9y agoOr perhaps they felt that as a foreign entity the US laws did not apply to them? There are lots of commercial transaction that may or may not violate US laws, typically those companies that engage in them are not aware of the reach of the long arm of Uncle Sam (not saying that's the case here, ZTE absolutely knew they were violating the embargo but still, you have to wonder to what extent they felt that being in China was protection enough). The more layers you use to obfuscate a thing like this the clearer it is that you know that you are doing something you should not be doing.