ZTE Shuts Down Finally In US
By Olabisi Olaleye with Agency’s report
Following the ban imposed by the United States Of America government, China’s second biggest telecoms and solutions provider, ZTE Corporation has shut down its main business operations.
Though, the company is trying to have the ban modified or reversed, it said on Wednesday.
The ban was imposed on ZTE last month in Washington, forbidding U.S. firms from supplying it with components and technology after violating the U.S. export restrictions by illegally shipping products to Iran.
ZTE revealed that it had submitted a request to the U.S. Commerce Department for the suspension of the ban.
“As a result of the Denial Order, the major operating activities of the company have ceased,” ZTE said in the exchange filings on Wednesday.
“As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject in compliance with laws and regulations,” it said.
According to agency’s report, 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.
Industry watchers believed that the ban would have a major and devastating effect on ZTE.
Recall that the ban, which threatens to stiffle ZTE’s supply chain came amid heightened tension over a possible U.S.-China trade war. Though, the Chinese government have raised the issue of ZTE last week with a visiting U.S. trade delegation.