ZTE ceases main business operations

10 May 2018

China’s second largest telecoms equipment provider ZTE Corp has ceased its main business operations, due to a ban imposed by the US government last month forbidding US firms from supplying it with components and technology after it was found to have violated US export restrictions by illegally shipping goods to Iran. ZTE relies on US companies such as Qualcomm and Intel for up to a third of its components, Reuters reports, adding that ZTE is in the process of trying to have the ban modified or reversed.

‘As a result of the Denial Order, the major operating activities of the company have ceased,’ ZTE stated yesterday, adding: ‘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 is actively communicating with the US government ‘in order to facilitate the modification or reversal of the Denial Order’.

China, ZTE