A Dallas lawyer appointed to monitor Chinese telecom ZTE’s compliance with export laws has been pushing for a longer term in ways the Justice Department sees as inappropriate, people familiar with the matter say
of illegally exporting sensitive U.S. technologies to Iran and repeatedly lying to investigators.
Mr. Stanton has told people involved in the monitorship that he is “close personal friends” with U.S. District Judge Ed Kinkeade, the judge who appointed him, and that together they would do “what’s needed” to make sure ZTE complied with the Justice Department’s settlement. Company lawyers and Justice Department officials viewed that language as inappropriate and potentially unethical, people familiar with the matter said.
Mr. Stanton’s firm has made tens of millions of dollars a year from the monitorship, the people said, and his bills have risen in recent months as the spat over the term has escalated. Unlike ZTE, rival Huawei has aggressively fought sanctions and charges by the Justice Department, arguing they are politically motivated.ZTE still lags behind Huawei competitively despite its more conciliatory approach. ZTE has long trailed Huawei, its main Chinese rival in the global market for smartphones and telecommunications gear. Once a top-five vendor of smartphones in the U.S., ZTE is now a minor seller of handsets globally.
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