ZTE Halts Some Operations During US Trade Dispute
ZTE Corporation has indicated on its corporate website that it is pausing in its expansion plans while ceasing other major operational functions in the wake of recent actions by the US Department of Commerce's Bureau of Industry and Security (BIS) that effectively banned US companies from providing some optical and electronic components to the Chinese telecommunications company. "As a result of the Denial Order, the major operating activities of the company have ceased," ZTE stated in an undated filing with local stock exchanges that it posted on its website.
"As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject to compliance with laws and regulations. The company and related parties are actively communicating with the relevant US government departments in order to facilitate the modification or reversal of the Denial Order by the US government and forge a positive outcome in the development of the matters," the filing continues. The document is credited to Yin Yimin, ZTE chairman, on behalf of the company's board. The company stated in an earlier stock exchange filing that it had formally submitted a request to the BIS to stay the ban, as well as provided what it called, "supplemental information in response to the Denial Order according to the instructions of BIS."