ZTE Forced Out of US Smartphone Market

China's ZTE Corp says its main business operations have ceased in the United States following a ban imposed by the Commerce Department.

A major telecommunications company that is one of the top smartphone makers in China, ZTE outlined the severity of its position to the Hong Kong stock exchange on Wednesday evening.

Last week, Chinese mediator while addressing related trade talks with the USA correspondents in Beijing asked the United States to heed ZTE's plea, and take into consideration the company's attempts to modify the ban and advance its compliance.

ZTE, China's second biggest telecom, is working to have the ban modified or reversed, Reuters confirmed. The company is then said to have made false statements about the activity, obstructing justice by preventing disclosure to and ultimately misleading the us government (see USA banned from selling to ZTE after activation of export denial).

Furthermore, the two countries have been locked in a trade spat, with U.S. slapping around US$50 million worth of trade tariffs on China, following a seven-month long investigation into American intellectual property theft by the one-party state.

USA to open embassy in Jerusalem
Most agreements have foundered on the questions of territory, refugees and the status of Jerusalem. The Palestinians seek the eastern sector as capital of their hoped-for state.

Chinese smartphone maker ZTE has sent shockwaves through the US market by announcing that it is to close down its domestic and worldwide operations, Tech Times is reporting. For now, ZTE's manufacturing is halted, leaving employees to attend every-other-day training sessions and hang out in company dorms.

It's hard to imagine that the Trump administration - which just last week banned Huawei and ZTE devices from military bases in the USA - will change its mind, given the U.S. government's long-standing belief that Chinese tech firms pose a threat to national security.

Beyond the company's executives and employees, the denial order also categorised any "representatives" or "agents" as falling under the ban that prohibited participation "in any way in any transaction involving any commodity, software or technology exported or to be exported" from the US. It's the fourth largest supplier of smartphones in the US.

"As of now, the Company maintains sufficient cash and strictly adheres to its commercial obligations subject to compliance with laws and regulations", ZTE said in a market announcement. The ban is set to last 7 years, but ZTE has feverishly contested the ruling, claiming that the ban would irreversibly damage the brand. The firm eventually evolved into the publicly traded ZTE Corporation, and now operates three business units - carrier networks, terminals, and telecommunication. As of Thursday, its website and flagship smartphone store on Alibaba's Tmall online marketplace had suspended sales.

We've reached out to ZTE for further comment on the matter.

  • Ronnie Bowen