Business
10:26, 10-May-2018
ZTE business operations 'have ceased' after US denial order
["china"]
Share
Copied
Chinese smartphone maker ZTE confirmed on Wednesday it has ceased its business operations in the wake of a seven-year ban imposed by the US last month, a decision the company is continuing to rally against.
After the US Commerce Department issued a denial order over ZTE’s alleged exports of telecom gear to Iran and the Democratic People’s Republic of Korea, the company confirmed in a statement “major operating activities of the company have ceased.”
According to Global Times, as of Wednesday consumers have been unable to make purchases from either ZTE's official website or e-commerce platform Tmall.
All the company's electronic devices had been removed, and the home page of ZTE's website reads "website under revision, coming soon."
Read more on ZTE:
ZTE’s statement stressed that “the company maintains sufficient cash and strictly adheres to its commercial obligations subject in compliance with laws and regulations,” adding that it was still communicating with US authorities “to facilitate the modification or reversal of the Denial Order… and forge a positive outcome in the development of matters.”
According to Caixin, employees at ZTE’s manufacturing plant in south China’s Shenzhen told the media that business trips had been halted, and workers were turning up to work “with not much to do.”
China’s Ministry of Commerce raised “solemn representations” over the ZTE case with the US trade delegation led by Treasury Secretary Steven Mnuchin that visited Beijing last week.