The US Commerce Department Asked To Terminate Business Ban By ZTE
The US Commerce Department Asked To Terminate Business Ban By ZTE
ZTE Halts Android Phone Sales In China Amid US Row
10 May, 2018, 14:09
The company said in a Wednesday investor note that, as a result of the USA "denial order, the major operating activities of the company have ceased". 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.
The company added that it's communicating with the USA government to have the denial order reversed or modified. USA officials have said the decision of the BIS to impose the ban against ZTE was not related to trade policy, according to Chinese press reports.
Last March, ZTE came to a settlement agreement with the US government after they admitted to shipping products to Iran and other countries that are under a trade ban. The ban was implemented after ZTE was discovered to have violated a 2017 settlement regarding the evasion of United States sanctions against North Korea and Iran.
No products were listed on ZTE's official online store on e-commerce platform Tmall and the website said it was "undergoing revision".
ZTE said that the U.S ban was unfair and threatens its survival.
The ban on sales to ZTE has also highlighted China's heavy dependence on semiconductor imports between growing trade stress with the US.
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The ban was issued by the U.S. Commerce Department in April, after the U.S. government said ZTE network equipment could pose a risk to national security.
A USA delegation traveled to Beijing last week to discuss the brewing trade conflict with their Chinese counterparts. They are now appealing this order that forbids any USA firm from supplying them with components and technology.
ZTE "maintains adequate money and rigorously adheres to the own commercial obligations subject to compliance with regulations and laws", it said from the announcement issued into the Hong Kong stock market.
From what we can tell in the crowd support link above that current users of Telstra/ZTE devices can continue to use these devices and that safety has not been compromised nor will it be. Now, it's been revealed that the company is ceasing major operations.
Last but not least, we have approached ZTE in Australia for comment, but - understandably - they're not in a position to make any public comment at this stage. The company could not compete due to an export ban from the United States.
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