China's ZTE stops major operations following US export ban

ZTE's booth during Mobile World Congress in Barcelona

Chinese telecommunications giant ZTE is ceasing all "major operating activities" after being hit by sanctions from USA regulators.

ZTE has announced that "major operating activities of the Company have ceased" in the wake of the U.S. ban. ZTE was hit with a ban last month by the United States government which forbids US-based companies from supplying technology to ZTE, after it was deemed to have violated USA export restrictions by illegally shipping goods to Iran. Analysts have said it will be hard for ZTE to stay competitive even if it could find non-American suppliers. Like ZTE before it, Huawei is reportedly under investigation in the US for violating sanctions against Iran.

Chinese mobile and networking firm ZTE has announced it is shutting down just weeks after being hit with a U.S. government ban.

ZTE was accused of violating U.S. sanctions on North Korea and Iran, as well as lying to USA officials.

Last month, the Department of Commerce officially instated the ban, alleging that ZTE had violated the terms of the sanction case.

ZTE said that the U.S ban was unfair and threatens its survival.

It was rather expected that ZTE's supply chain was going to suffer from the US-China trade war so the firm had to act accordingly - the official site doesn't allow you to buy anything and buying from Alibaba's Group e-commerce Taobao is a no-go as well.

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It looks like the sanctions that the USA government has placed on ZTE may be the beginning of the end, at least for their main business operations.

China's Ministry of Commerce said in a statement last Friday that Chinese officials had made "solemn representations" over the ZTE case to the USA delegation.

ZTE was accused by the U.S. Department of Commerce of illegally shipping U.S. equipment to Iran and North Korea.

Remember, as you possibly feel bad for ZTE in all of this - the reason they got this U.S. supply ban was because they lied about paying bonuses to workers.

In its statement to the stock exchange Wednesday, ZTE said that it maintains sufficient cash as of now and "strictly adheres to its commercial obligations subject to compliance with laws and regulations". Unlike many online publications, we don't have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.

"We want to make sure our customers who already own Telstra-branded ZTE devices are looked after", she said. A ZTE employee has been quoted by Reuters as saying that staff have been reporting to work as normal but "with not much to do". The company could not compete due to an export ban from the United States.

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