China's ZTE says main business operations cease due to US ban

China's ZTE says main business operations cease due to US ban

China's ZTE says main business operations cease due to US ban

ZTE last month was hit with a ban from Washington forbidding US companies to supply it with components and technology after it was found to have violated USA export restrictions.

The government's order, which went into effect immediately, bans American firms from exporting components directly to ZTE or through a third country until March 13, 2025. In the United States smartphone ZTE took fourth place in sales, as one of the first to catch on to the popularity of USA citizens of the gadgets with large screens.

ZTE was accused of violating United States sanctions on North Korea and Iran, as well as lying to United States officials.

The US Department of Commerce's Bureau of Industry and Security (BIS) in April imposed the denial of export privileges against ZTE.

Selected Telstra-branded mobile devices now unavailable: Due to issues outside of our control, certain Telstra-branded mobile phones and mobile broadband devices made by ZTE are now unavailable. ZTE was slapped with a seven-year ban prohibiting it from any transactions with the U.S. for breaching the terms of a settlement related to its business dealings with Iran.

ZTE's shares have been suspended since the order was issued, but those of its non-U.S. suppliers, such as Mobi Development Co. and Shenzhen SDG Information Co., are down around 1% on the news that it is ending major operations.

Dr Mahathir says 'confident of winning' Malaysia election
This newspaper's team of journalists on the ground reported long queues of voters at some of the polling stations. At the last election, BN lost the majority vote in its worst performance ever, but pulled in 133 seats.

ZTE's filing noted it still had "sufficient cash" and was sticking to its commercial obligations.

ZTE may be suspending major activities to throw their full weight behind their argument against the USA government.

ZTE wasn't kidding around when it suggested that a U.S. Department of Commerce order would "severely impact" its survival. Non-U.S. players like Taiwanese chip maker MediaTek have been stepping up in the meantime, but even with that support, it's tough to imagine ZTE efficiently rallying.

ZTE declined to comment on the suspension of its sales channels and after-sale services as well as the revision and redirection of its websites.

One employee told Reuters that staff are still reporting to work, but "with not much to do". According to Reuters, the Chinese government discussed the issue with a US delegation last week amid intensifying US-China trade tensions. The company could not compete due to an export ban from the United States.

Related news