ZTE requests that US Department of Commerce suspend seven-year ban

Posted May 10, 2018

"As a result of the Denial Order, the major operating activities of the company have ceased", read an exchange filing, spotted by Reuters.

ZTE said that the U.S ban was unfair and threatens its survival. The decision came after it was revealed the company allegedly made false statements to USA officials.

The ban "will also cause damages to all partners of ZTE including a large number of USA companies", ZTE's public filing states.

"It is unacceptable that [the US Commerce Department] insists on unfairly imposing the most severe penalty on ZTE even before the completion of investigation of facts", the company said in an April statement. "As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject to compliance with laws and regulations".

The company says that it's working with the USA government to get the ban reversed, but there's no progress on that front so far.

The ban imposed on ZTE by the Department of Commerce makes it illegal for USA companies to sell any products and services to the company; but how did it reach this stage?

ZTE says it's in communication with the US government to try and reverse or modify the ban. That, joined with the existing ban on doing business with companies like Intel and Qualcomm, has threatened ZTE's future. The Commerce Department ruled ZTE broke the pact, however, by paying full bonuses to employees at the heart of the dispute despite promising otherwise - it also lied to U.S. officials about the payouts.

The company posted a press release stating it had shut down major operations due to the denial order issued by the USA government.

Last year, ZTE admitted it shipped US-made parts to Iran and North Korea despite trade restrictions.

The company did not immediately respond to a request for more information.

Chinese technology company ZTE said late Wednesday it has halted its main operations after USA authorities banned it from doing business with American suppliers.

ZTE is continuing to communicate with the U.S.in order to revise or reverse the order.