China's ZTE stops major operations following U.S. export ban


China's ZTE stops major operations following U.S. export ban

ZTE says it's in communication with the USA government to try and reverse or modify the ban. The vendor also said that it making efforts to resolve the matter "as soon as possible" and will continue to maintain close communication with relevant parties, the memo added.

ZTE has filed a request with the U.S. Commerce Department's Bureau of Industry and Security for a suspension on the ban related to U.S. companies selling components to ZTE, Reuters has reported. In response, the US Department of Commerce banned US firms from supplying tech and parts to the company until 2025, according to the New York Times.

ZTE, which also makes smartphones, had said the ban threatened its existence by cutting off access to US suppliers of key components like microchips. Some of the affected firms include Qualcomm, Dolby and Google.

Chinese telecommunications company ZTE has stopped major business operations, it has revealed, as a effect on the United States ban on selling components to the maker.

ZTE said its main business operations have ceased due to a 7-year supply ban imposed by the USA government, Reuters reported.

On April 17, the Chinese company was forced to halt trading of its shares in Hong Kong and Shenzhen following the decision by the U.S authorities.

On Wednesday, May 9, ZTE announced in an exchange filings that it is ending major operating activities following the imposed ban by the Department of Commerce.

As one of the world's largest telecom equipment makers alongside Huawei [HWT.UL], Ericsson (ERICb.ST) and Nokia (NOKIA.HE), ZTE relies on USA companies such as Qualcomm (QCOM.O) and Intel (INTC.O) for up to a third of its components.

US authorities imposed the penalty after discovering that Shenzhen-based ZTE had misled regulators involving the illegal shipments to the DPRK and Iran.



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