China's ZTE stops major operations following US export ban

China's ZTE stops major operations following US export ban

China's ZTE stops major operations following US export ban

"As a result of the Denial Order, the major operating activities of the company have ceased", ZTE said in a filing to the Hong Kong stock exchange on Wednesday.

The company was recently banned from buying technology from American companies, which includes core components of smartphones, such as Qualcomm's chips and even Android licenses from Google.

Boost Mobile Australia, which sold the Boost Zume 5 (a re-badged ZTE smartphone), has also pulled the product page for that device from the company's website.

Telstra has said it is ceasing sales of Telstra-branded ZTE mobile and mobile broadband devices throughout its stores and partners following a move by the United States Government banning USA firms from supplying the Chinese device maker with components and technology.

Remember, as you possibly feel bad for ZTE in all of this - the reason they got this U.S. supply ban was because they lied about paying bonuses to workers. ZTE then lied to officials about the violations. 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 move, according to reports, has forced the ZTE to halt sales of its smartphones in China.

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The government's order, which went into effect immediately, bans American firms from exporting components directly to ZTE or through a third country until March 13, 2025.

ZTE Corp, China's biggest publicly traded telecommunications equipment provider, has halted sales of its consumer products and related services after the United States government last month banned the sale of American technology to the company.

ZTE was founded in 1985 and stayed in business for 33 years. According to Neil Shah, research director at Counterpoint Research, speaking to Reuters said Qualcomm alone stands to lose half a billion dollars in revenue from the ZTE ban. The company is communicating with the United States to change the ruling and to, "forge a positive outcome in the development of matters".

In a bid to get the ban removed, the company has submitted an application to the U.S. Commerce Department's Bureau of Industry and Security (BIS) requesting it be suspended. The Chinese government raised the issue of ZTE last week with a visiting US Trade Delegation.

What Does This Mean For Consumers?

Also closed the online store ZTE.

ZTE may become the first victim of the "new cold war" between China and the United States.

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