The Chinese technology giant ZTE has announced the end of its "major operating activities" following a ban that prevents US companies from selling hardware and software to the world. for seven years. In a deposit on the Hong Kong Stock Exchange, ZTE said it had enough money to maintain its trade obligations, but the situation looks bleak for the second largest smartphone maker in China.
ZTE added that she continued to contact the relevant departments of the US government in the hope of altering or reversing the order of refusal and "forging a positive outcome in the development of business".
Last year, ZTE admitted to violating US sanctions by selling technology manufactured in the United States in Iran and North Korea. The company paid $ 890 million in fines and said it was reprimanding the leaders responsible for the plan and denying them their bonuses. But the company broke the promise, distributing full bonuses and only firing four employees while retaining 35 others who broke the law. In response to this "pattern of deception, misrepresentation and repeated violations", the US Department of Commerce issued the ban in April.
Reports indicate that at least 25% of ZTE's components come from American companies, such as Intel and Qualcomm, which provide chips for its smartphones. The ban also covers the series of standard Android apps from Google.
"The refusal order will not only have a severe impact on the survival and development of ZTE, but will also cause damage to all ZTE partners, including a large number of US companies" , said ZTE at the time of the ban. ]
Analysts say that even if it uses non-US suppliers, ZTE might have a hard time staying afloat. Reuters reports that the Taiwanese company Mediatek has received a permit from the Taiwanese government to continue selling components to ZTE.
The DOC opening an investigation into similar violations of US sanctions against Iran by its Chinese colleague Huawei, a real trade war between America and China could already take place.
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