ZTE Halts Main Operations, Asks U.S. to Reverse Supply Ban
Last month, Washington banned U.S. firms to supply technology to ZTE Corp., China's second biggest telecom equipment maker, after it was found to have violated U.S. export restrictions. This week, ZTE has suspended its main business operations and is awaiting a response to its request to the U.S. Commerce Department for the reversal of the ban.
"As a result of the Denial Order, the major operating activities of the company have ceased," ZTE said in the filing.
"As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject to compliance with laws and regulations," it said.
The threat to ZTE's supply chain came amid heightened tension over a possible U.S.-China trade war. The Chinese government raised the ZTE issue last week with a visiting U.S. trade delegation.