Chinese telecommunications and equipment company ZTE has said it is shutting down its main operations following a US government ban.
In an exchange filing late on Wednesday, ZTE said that last month's Denial Order has forced the company to cease operations.
“As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject in compliance with laws and regulations,” it said.
The ban stopped US companies from supplying ZTE with parts and technology, and was issued after the Chinese firm apparently violated U.S. export restrictions by shipping goods to Iran.
ZTE, China's second biggest telecom, is working to have the ban modified or reversed, Reuters confirmed. ZTE said it was actively communicating with the U.S. government “in order to facilitate the modification or reversal of the Denial Order by the U.S. government and forge a positive outcome in the development of matters.” The company submitted a request to the U.S. Commerce Department for the suspension of the ban.
ZTE seems to have suspended online stores on the website, and on Taobao (e-commerce platform). Reuters says the company's staff is reporting to work as usual, but there really isn't much to do.
Taiwanese semiconductor firm Mediatek said last week that its government gave it permission to continue supplying ZTE with its products.
Image Credit: Flickr / Kārlis Dambrāns