ZTE says business halted by US component sales ban

Source:Global Times Published: 2018/5/9 21:38:40

Chinese telecom equipment supplier ZTE Corp said on Wednesday that it has been unable to conduct its major business due to the US government's ban on the sales of key components and chips.

"The company and relevant parties are actively communicating with the US government to push an adjustment or even a cancellation of the sales ban. We [are trying to] promote things in a positive way," the company said in a filing sent to the Shenzhen Stock Exchange on Wednesday.

In the filing, ZTE also stressed that its capital is "abundant" and the company maintains its credit lines on the basis of "operating legally."

The Global Times found that consumers have been unable to make a purchase on either ZTE's official website or its flagship store on e-commerce platform T-mall as of Wednesday.

All the company's electronic devices had been removed, and the home page of ZTE's website reads "website under revision, coming soon."

ZTE halted trading of its shares in Hong Kong and Shenzhen on April 17, after the US Department of Commerce's Bureau of Industry and Security (BIS) imposed a denial of export privileges against ZTE on April 16.

The BIS claimed that ZTE has made "additional false statements" about having taken action against the employees responsible for illegal sales of goods to Iran and North Korea.

China's Ministry of Commerce said on Friday that the nation had lodged solemn representations with the US concerning the ZTE case during Chinese Vice Premier Liu He's meeting with a US delegation led by Treasury Secretary Steven Mnuchin from May 3 to May 4.

Taiwan-based chip designer Mediatek on Monday received a permit to sell components to ZTE, the Wall Street Journal reported. This led to market expectations that the telecommunications producer could get a lifeline after finding a substitute for US chips.

Posted in: COMPANIES

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