ZTE suspends operations in face of US ban

Nieuws Algemeen Wereld 9 MAY 2018
ZTE suspends operations in face of US ban

ZTE announced that its has ceased its major operating activities due to the export ban imposed by the US government on the Chinese company. Just over three weeks after the ban was announced, the company said in a statement to investors that "as a result of the denial order, the major operating activities of the company have ceased". 

ZTE said it will continue to meet its existing commercial obligations and has sufficient cash on hand to do so. The company added that it was "actively communicating" with US officials in an effort to have the ban modified or reversed. ZTE previously said it would take legal action to have the "unfair" ban overturned and confirmed it was presenting additional evidence to the US government to build its case. 

The announcement follows reports from Asia that ZTE started suspending sales earlier this week already. The Nikkei Asian Review reported earlier that sales were suspended online and in a directly run store at ZTE's Shenzhen headquarters. Alibaba's Tmall online marketplace had also stopped selling ZTE phones by 08 May. 

Categories:

Algemeen

Companies:

ZTE

Regions:

Wereld

Tags:

Devices, Regulations, Sales, Government policy

Related Articles

VERENIGDE STATEN 16 JUL 2018

US lifts ban on sales to ZTE after USD 1.4 bln in fines

ZTE has resumed operations after the US government lifted a ban on sales to the Chinese company. ZTE paid a USD 1 billion fine last month and deposited another USD 400 million in escrow, the Department of Commerce confirmed, in order to put an end to the order denying US companies to sell to the company. 

CHINA 5 JUL 2018

ZTE names new top management, Xu to become CEO

ZTE has named Xu Ziyang, president of its Telecom Cloud and Core Network product line, as its new CEO, replacing Zhao Xianming. Li Ying, a vice-president in the finance department, will take over the role of CFO, replacing Shao Weilin, while Gu Junying, a newly elected executive director on the new board, will head the company's human resources department. 

VERENIGDE STATEN 4 JUL 2018

US eases restrictions on ZTE in interim order valid til August

The US Department of Commerce has eased come of the restrictions on ZTE operating in the US. In a temporary order valid until 01 August, the government agency said ZTE would be allowed to provide support and security updates for its existing equipment and devices in use. 

VERENIGDE STATEN 6 JUN 2018

ZTE inks preliminary deal to lift US ban - report

ZTE has signed an agreement in principle to life the US commerce department's 7-year ban on buying from US suppliers, according to unnamed sources cited by Reuters. The company last month suspended major operations in the wake of the ban, which helped increase its losses to over USD 3 billion as clients pulled out of contracts. However, ZTE has since made a number of management changes and agreed to pay a USD 1 billion fine plus USD 400 million in escrow in the event of future violations, said the sources,

WERELD 23 MAY 2018

'Verlies ZTE wegens exportban al meer dan 3 miljard'

ZTE heeft inmiddels zo'n 20 miljard yuan, omgerekend zo'n 3,1 miljard dollar, verloren als gevolg van de exportban die is opgelegd door de VS. Klanten trekken zich terug uit onderhandelingen en de kosten lopen op, zo melden anonieme bronnen aan Bloomberg. ZTE heeft wel al een draaiboek liggen waarmee het Chinese bedrijf zich wil herpakken mocht de VS besluiten de sancties te verlichten. Zou zouden fabrieken die momenteel stil liggen, binnen enkele uren weer operationeel kunnen zijn. Gisteren werd bekend dat

VERENIGDE STATEN 22 MAY 2018

US agrees to lift ZTE ban in trade deal with China - report

The US and China have agreed a deal that would lift the export ban against ZTE, allowing the company to continue business after making changes to its management, people with knowledge of the matter in both countries told the Wall Street Journal. 

VERENIGDE STATEN 18 MAY 2018

US House committee seeks to stop renegotiation of ZTE ban

The US Congress is looking to stop the White House from softening the ban on ZTE. The House Appropriations Committee unanimously accepted an amendment to an appropriations bill that would prevent the Commerce Department from renegotiation of the sanctions, according to Representative Dutch Ruppersberger, who authored the amendment.  

VERENIGDE STATEN 15 MAY 2018

US Commerce Secretary pledges 'very prompt' action on ZTE case

The US Commerce Secretary, Wilbur Ross said his department is considering alternative punishments for ZTE, to ease the impact of the earlier imposed seven-year ban on the company working with US suppliers. Speaking at the National Press Club, Ross said the Commerce Department would consider the question of easing ZTE penalties "very, very promptly", the Wall Street Journal reports.

CHINA 14 MAY 2018

China starts review of Qualcomm's refiled bid for NXP

China's Ministry of Commerce has restarted its review of Qualcomm's bid to buy NXP Semiconductors, Bloomberg reported, citing anonymous sources close to the matter. The move comes after Qualcomm refiled the application last month, offering new remedies as it sought to get the bid approved. Officials at the ministry have been asked to hasten the review and the proposed remedies to protect local companies. The sources noted that approval of the deal is not definite and that reviews could still get delayed aga

CHINA 14 MAY 2018

Trump says to work with China to get ZTE 'back in business fast'

US President Donald Trump said he is working with China to limit job losses at ZTE and help the Chinese company "get back in business, fast". His tweet follows a statement from ZTE that it has ceased all major operations due to the export ban on supplies from the US to the company. 

ITALIË 11 MAY 2018

ZTE Italia CEO reassures Wind Tre on network build

The Italian subsidiary of China's ZTE has denied reports that it's suspending its activities, with the company's CEO Hu Kun telling Corriere delle Comunicazioni that the Wind Tre network build, among other ongoing contracts, will continue in spite of the parent company's decision to cease major operating activities. "Our operations are not only continuing, on the contrary, they are proceeding with even greater determination," said Kun, adding that "after having learning of the decision of the US government,

WERELD 8 MAY 2018

Oclaro suspends shipments to ZTE, to lose over 10% of revenues

Optical components maker Oclaro announced that it's suspended shipments to ZTE, in line with the US government export ban against the Chinese company. Oclaro said that despite losing ZTE as a customer generating over 10 percent of its revenues, it expects tight cost control and its product differentiation to help it maintain its financial performance. 

CHINA 8 MAY 2018

ZTE delays AGM due to US uncertainty

ZTE has delayed its annual general meeting of shareholders, due to the ongoing uncertainty about the impact of the US export ban on the Chinese company. The meeting was scheduled to take place 11 May, and a new date will be called before 30 June, the board announced. This will also mean a delay in the closing record date for receiving its annual dividend. 

TAIWAN 8 MAY 2018

Taiwan lets MediaTek resume exports to ZTE

Taiwan's Ministry of Economic affairs has granted an export permit to MediaTek, allowing the company to resume sales of its smartphone chips to ZTE, the Wall Street Journal reported, citing a spokesperson at MediaTek. The company supplies chipsets to ZTE, which faces an export ban imposed by the US government. The approval will help ZTE restore part, though not all, of its supply chain.

VERENIGDE STATEN 7 MAY 2018

ZTE requests stay of US export ban

ZTE announced that it's filed a formal request for a stay of the export ban imposed by the US government against the company. The application was made to the Commerce Department's Bureau of Industry and Security. ZTE said it also submitted additional information to the BIS as requested under its order. 

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.