ZTE working to solve USA component sales ban - and save the company

ZTE's booth during Mobile World Congress in Barcelona

ZTE relies on U.S. firms for key smartphone components, including microchips from Qualcomm and glass from Corning.

Those actions hit the company hard. The statement added that ZTE would continue "its efforts to resolve the issue through communication".

Employees at ZTE's headquarters in the southern Chinese technology hub of Shenzhen were cagey about speaking to reporters after the ban was announced, but some voiced concerns.

ZTE says it's in communication with the US government to try and reverse or modify the ban. ZTE relies heavily on United States companies to supply as much as a third of its components.

Saying it has improved its compliance, ZTE has asked for a stay on the ban and supplied supplemental data bolstering its case to the Commerce Department.

ZTE had settled its sanctions case with the USA with a record $900 million fine, but the U.S. reactivated sanctions last month after the company allegedly violated settlement terms.

The company was recently banned from buying technology from American companies, which includes core components of smartphones, such as Qualcomm's chips and even Android licenses from Google.

Upon pleading guilty to conspiracy to unlawful export, obstruction of justice, and making false statements to federal investigators, it appeared ZTE was committed to making a positive change.

ZTE may not be the most well-known brand in the United States, but just last year it was the fourth-largest smartphone vendor in the region, and it has offered some mold-breaking products such as last year's dual-screened Axon M.

Last month, the US Commerce Department blocked American firms from selling parts or providing services to ZTE until 2025.

The company did not immediately respond to a request for more information.

ZTE said its main business operations have ceased due to a 7-year supply ban imposed by the USA government, Reuters reported.

Last month, the US government reactivated the ban after it said ZTE violated terms of the settlement and made repeated false statements, which ZTE disputed.

Related:

Comments

Other news