ZTE founder
ZTE
announced the “major operating activities of the company have
ceased” following a ban imposed by the US government, but added it
is still working to find a resolution, reports Mobile World Live.
In
a release, the Chinese vendor said the decision had been
made as a result of a US government denial order issued in
April , which bars US companies from selling components to ZTE for a
period of seven years.
“As
of now, the company maintains sufficient cash and strictly adheres to
its commercial obligations subject to compliance with laws and
regulations,” it stated.
“The
company and related parties are actively communicating with the
relevant US government departments in order to facilitate the
modification or reversal of the Denial Order by the US government and
forge a positive outcome in the development of the matters.”
ZTE
said it would make additional announcements regarding the issue as
“soon as practicable”.
In
ceasing operations, Reuters reported
the company appears to have suspended its online stores on its own
website and on Alibaba’s e-commerce platform.
Last
month, the US government said it was toughening up on ZTE by imposing
restrictions on US companies from selling services and equipment to
the vendor after ruling it made false statements during an
investigation into violations of trade sanctions with Iran.
ZTE
said it would fight the ban, but warned at the time the move could
threaten its survival if it was upheld.
Last
week, China appealed to the US government for an amendment to the
block during trade talks and the case was expected to be heard by US
President Donald Trump.
Indeed,
the company faces broad reprucussions as a result of the US decision.
A
significant impact will be felt on its handset business because it
will be blocked from accessing key hardware from companies such as
Qualcomm and potentially the use of Android software from Google.
The
issue with ZTE comes amid an escalating row between the US and China,
which is heading towards a possible trade war between the two
superpowers.
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