Home Government Tech Policy ZTE halts main business activities in US after ban
ZTE halts main business activities in US after ban Featured

Chinese telecommunications firm ZTE has halted its main business activities in the US after a seven-year ban was imposed on American companies supplying it with components.

According to a Reuters report, in a regulatory filing on Wednesday US time, the company said: "As a result of the Denial Order, the major operating activities of the company have ceased.

"As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject in compliance with laws and regulations."

Given that ZTE, the second biggest telecommunications equipment maker in China after Huawei Technologies, uses Android in all its smartphones, there have been rumours that it is holding talks with Google to see if it can continue to use the mobile operating system despite the ban.

As far as smartphone sales in the US go, ZTE sits fourth behind Apple, Samsung and LG.

ZTE gets about one-third of the components for its smartphones from Qualcomm and Intel. It has asked the US to consider a stay of the ban.

US officials visited China last week for discussions on what was shaping to be a trade war, after US President Donald Trump imposed duties on some Chinese imports. The ZTE issue is said to have been raised by China during these talks.

The US Department of Commerce imposed the ban on ZTE in April, with the department saying at the time that it was due to alleged false statements made by the company during talks in 2016 over a charge of shipping telco equipment to Iran and North Korea.

As a penalty, US firms cannot sell parts to ZTE for seven years.

ZTE was fined US$1.19 billion in March 2017 and also agreed to a seven-year suspended export ban which would take effect if it was found to be in violation of the Export Administration Regulations.

Subsequently, the Department of Commerce claims to have found that statements made by ZTE to the Bureau of Industry and Security were false.

CDAO SYDNEY TURNS 5 IN 2019

With 50+ Speakers, 300+ senior data and analytics executives, over 3 exciting days you will indulge in all things data and analytics before leaving with strategic takeaways that will catapult you ahead on your journey

· CDAO Sydney is designed to bring together senior executives in data and analytics from progressive organisations
· Improve operations and services
· Future proof your organisation in this rapidly changing technological landscape
· CDAO Sydney 2-4 April 2019
· Don’t miss out! Register Today!
· Want to find out more? Download the Agenda

REGISTER HERE!

LEARN HOW TO REDUCE YOUR RISK OF A CYBER ATTACK

Australia is a cyber espionage hot spot.

As we automate, script and move to the cloud, more and more businesses are reliant on infrastructure that has the high potential to be exposed to risk.

It only takes one awry email to expose an accounts’ payable process, and for cyber attackers to cost a business thousands of dollars.

In the free white paper ‘6 Steps to Improve your Business Cyber Security’ you’ll learn some simple steps you should be taking to prevent devastating and malicious cyber attacks from destroying your business.

Cyber security can no longer be ignored, in this white paper you’ll learn:

· How does business security get breached?
· What can it cost to get it wrong?
· 6 actionable tips

DOWNLOAD NOW!

Sam Varghese

website statistics

Sam Varghese has been writing for iTWire since 2006, a year after the sitecame into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

 

Popular News

 

Telecommunications

 

Sponsored News

 

 

 

 

Connect