ZTE Ceases Major Operations in the US Following Ban

ZTE Ceases Major Operations in the US Following Ban

The Shenzhen-based company said it had ceased "major operating activities", in a filing late on Wednesday to the Hong Kong stock exchange.

Washington forced a 7-year ban on USA companies selling components and software to ZTE in the previous month after knowing that Chinese telecom company breached the US sanctions over Iran.

Without the parts, ZTE could not stay competitive in the consumer technology industry. "The organization and related parties are actively communicating with all the appropriate U.S. government departments in order to ease the modification or adjustment of the Denial Order from the united states administration and forge a beneficial outcome in the maturation of the topics".

The Chinese firm is greatly dependent on USA chips imports and the ban on sales hampers the smartphone business.

Last week, Chinese mediator while addressing related trade talks with the USA correspondents in Beijing asked the United States to heed ZTE's plea, and take into consideration the company's attempts to modify the ban and advance its compliance.

ZTE got hit with a fine of nearly $900 million past year for evading the embargo on telecom equipment exports to Iran, by using US components in devices that it sold there.

On Thursday, online ZTE stores on its website and major e-commerce platforms were "under construction".

Chinese mobile phone maker, ZTE, survives to fight another day, but its business continues to be hampered by restrictions imposed last month by the United States administration.

The ban, which effectively cuts off much of ZTE's supply chain, came amid heightened tension over a possible US-China trade war. ZTE said on Sunday it had submitted a request to the U.S. Commerce Department for the suspension of the ban. "As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject in compliance with laws and regulations", it added.

"ZTE made false statements to the U.S. Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation", U.S. Secretary of Commerce Wilbur Ross said in a statement. The employee, who declined to be named, said business trips had been halted.

Related Articles