Sci-tech

Chinese company ZTE stops business operations after United States ban

Chinese company ZTE stops business operations after United States ban

ZTE said it was actively communicating with the USA government 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 matters.

In a filing to the Shenzhen stock exchange, ZTE also said that it had delivered additional evidence for the BIS investigation.

ZTE said that the U.S ban was unfair and threatens its survival.

Saying it has improved its compliance, ZTE has asked for a stay on the ban and supplied supplemental data bolstering its case to the Commerce Department.

Chinese telecommunications company ZTE has stopped major business operations, it has revealed, as a outcome on the U.S. ban on selling components to the maker. The ban was implemented after ZTE was discovered to have violated a 2017 settlement regarding the evasion of USA sanctions against North Korea and Iran.

WhatsApp Business App Will Soon Land in the Apple App Store
It's also been suggested that a similar message containing the words "if you touch the black point then your WhatsApp will hang". A reddit thread shares this message and says the "best way" to send it would be through a computer or the WhatsApp Web version.

In addition to the fine, the company was subject to a seven-year, $300 million suspended penalty if the company violated the settlement.

The U.S. action, first reported by Reuters, could be devastating to ZTE. Last month, the US Commerce Department blocked US firms from selling parts or providing services to ZTE until 2025. Instead of suffering the consequences of their actions, the employees had in fact received full bonuses. More recently, the company had shown off a concept phone with two notches and glass body, which is now unlikely to ever see the light of day.

The Department of Commerce determined ZTE made false statements to the Bureau of Industry and Security specifically in 2016 and 2017. There's nothing inherently wrong with using MediaTek SoCs, but it will very likely take away ZTEs competitive edge in the smartphone market.

Last month, the USA government reactivated the ban after it said ZTE violated terms of the settlement and made repeated false statements, which ZTE disputed.

ZTE said its main business operations have ceased due to a 7-year supply ban imposed by the USA government, Reuters reported.


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