Things are looking bleak as ZTE ceases main business operations

Jeannie Matthews
May 10, 2018

Chinese technology company ZTE said late Wednesday it has halted its main operations after us authorities banned it from doing business with American suppliers.

ZTE past month was hit by a ban by Washington prohibiting USA organizations to produce it together with technology and components later it was found to possess broken US export limitations.

ZTE says it's in communication with the US government to try and reverse or modify the ban. Others note the actions against ZTE could foreshadow the effects of a U.S. However given the nature of ZTE's violations - shipping U.S. technology to Iran and North Korea, and then lying about employee reprimands - it will be a significant battle to get the export ban meaningfully altered. For now, the company has enough money to maintain "its commercial obligations subject to compliance with laws and regulations".

Taiwanese semiconductor company Mediatek (2454.TW) said last week it had received a permit from the Taiwanese government to continue to supply ZTE.

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The company is ZTE, and it makes smartphones, tablets and other tech devices.

ZTE wasn't kidding around when it suggested that a U.S. Department of Commerce order would "severely impact" its survival.

ZTE appears to have suspended its online stores on its own website as well as on Alibaba Group's e-commerce platform Taobao over the past few days, which display a "page being updated" message with no products to order.

Chinese mobile and networking firm ZTE has announced it is shutting down just weeks after being hit with a United States government ban. A ZTE employee also mentioned that employees are reporting to work as usual, but "with not much to do". A request for suspension of the ban has been submitted last Sunday.

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