Chinese company ZTE stops business operations after U.S. ban

Chinese company ZTE stops business operations after U.S. ban

Chinese company ZTE stops business operations after U.S. ban

As a outcome of such heavy restrictions, the company today announced to Hong Kong stock market traders that it will be shutting down the majority of its operations.

The Chinese government has also been said to be negotiating with the US on the company's behalf, in hopes of stemming what is looking more and more like a looming trade war between the two countries.

Employees at ZTE's headquarters in the southern Chinese technology hub of Shenzhen were cagey about speaking to reporters after the ban was announced, but some voiced concerns.

As of now, all major operating activities have been shut down while ZTE tries to negotiate a modification or even reversal of the Denial Order. "As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject in compliance with laws and regulations".

ZTE says it's in communication with the US government to try and reverse or modify the ban.

ZTE may not be the most well-known brand in the United States, but just last year it was the fourth-largest smartphone vendor in the region, and it has offered some mold-breaking products such as last year's dual-screened Axon M.

TechRadar Pro has approached ZTE for comment, but for now, the outlook looks bleak for the Chinese firm.

The company posted a press release stating it had shut down major operations due to the denial order issued by the USA government. Now we have an answer: the company has ground to a halt.

The Department of Commerce determined ZTE made false statements to the Bureau of Industry and Security specifically in 2016 and 2017. The company paid a $1.2 billion fine in the case but failed to discipline employees involved and paid them bonuses instead. ZTE got to this place by selling goods and services to Iran and North Korea, which violated USA sanctions.

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

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