ZTE shuts down main operations while talks with USA continue

ZTE shuts down main operations while talks with USA continue

In a statement released amidthe events, ZTE's Chief Export Compliance Officer - U.S. -based lawyer Matt Bell - expressed the company would restructure its legal department as well as institute new policies, training, and automated tools to keep up with regulations.

The ban by the US Government against US companies selling tech to ZTE, China's second biggest telecom equipment maker, came after it was found to have violated US export restrictions by illegally shipping goods to Iran.

"Significant operating activities of the company have ceased" as a result of the US Commerce division "denial sequence" issued past month, ZTE said in a statement. Because American companies are ZTE's sole source of chip supply, the ban prompted immediate panic within the company.

A visit to ZTE's global site for devices redirects users to the corporate portal, although at the time of writing the US site is still functioning normally, with links to buy phones through carrier partners.

The ban specifically came following U.S. investigators' allegations that ZTE had made false statements regarding its own settlement of the case in March 2017 when the company pleaded guilty to the charges and was fined $1.2 billion.

In April, the United States Commerce Department banned American companies from working with ZTE. The ZTE has also suspended its store on Alibaba Group's e-commerce platform Taobao in the past few days.

More news: Germany's Merkel sees chance for electric auto battery production in Europe

The ban stopped United States companies from supplying ZTE with parts and technology, and was issued after the Chinese firm apparently violated USA export restrictions by shipping goods to Iran.

"Obviously we are watching the regulatory decisions on Huawei and ZTE equipment closely", a T-Mobile spokesperson told Tom's Guide in light of today's announcement. The Chinese mobile giant then lied to investigators when it declared the dealings had stopped.

Faced with falling sales and dwindling revenues, ZTE sees the coming fortnight as critical to its efforts to end a seven-year U.S. blockade imposed by Washington, Bloomberg has reported.

ZTE's brief statement gave few particulars, however the implications had been clear: a serious Chinese language firm is warning it might exit of enterprise due to the U.S. authorities.

ZTE derived 59 per cent of its revenue a year ago from its carrier network business, which includes switching and access systems, optical and data communications and wireless communication systems.

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