ZTE stops smartphone sales

ZTE stops smartphone sales

ZTE stops smartphone sales

ZTE announced it has shut down operations and closed its online store following a USA ban against it.

The announcement from Telstra comes as ZTE's main business operations cease, due to the ban imposed by the US Government. The Commerce Department said that the ban has been imposed after it found ZTE to have violated United States export restrictions by illegally shipping to Iran.

The company added that it's communicating with the US government to have the denial order reversed or modified. They did say that they are able to maintain "sufficient cash" and strictly adhere to their commercial obligations despite the fact that they are ceasing "major operating activities".

Previously NV was informed that the Ministry of Commerce announced a ban of us exports for Chinese smartphone maker ZTE.

Washington forced a 7-year ban on USA companies selling components and software to ZTE in the previous month after knowing that Chinese telecom company breached the US sanctions over Iran.

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But in light of the ongoing trade war between the United States and China, the Trump administration may not back down so easily, which would threaten ZTE's ongoing existence.

In attempt to find the now missing components that were supplied by American companies such as Qualcomm Inc. and Intel Corp., ZTE is turning to Taiwan-based chipmaker Mediatek Inc.

The US Department of Commerce's Bureau of Industry and Security (BIS) in April imposed the denial of export privileges against ZTE. With no phones rolling off the production line, ZTE has stopped sales through its website and Alibaba's Tmall marketplace. ZTE settled the sanction case with the US government last March after admitting to illegally shipping products with USA technology to countries including Iran and paying a record fine of almost $900 million.

From what we can tell in the crowd support link above that current users of Telstra/ZTE devices can continue to use these devices and that safety has not been compromised nor will it be. The DoC activated the ban in order to punish ZTE for failing to meet the requirements of a settlement reached a year ago.

According to reports, workers at the company's headquarters in Shenzhen are reporting to work but "with not much to do".

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