ZTE has announced it has suspended its operations after it was hit with a ban preventing it from purchasing products from companies in the United States.
The company posted a press release stating it had suspended major operations due to the denial order issued by the US government.
“As a result of the Denial Order, the major operating activities of the company have ceased,” stated the announcement.
ZTE was served with a seven-year ban from buying US technology products three weeks ago, after it was found to have violated sanctions involving bonuses issued to employees who shipped telecommunications equipment to Iran and North Korea.
“The company and related parties are actively communicating with the relevant US government departments in order to facilitate the modification or reversal of the Denial Order by the US government and forge a positive outcome in the development of the matters,” said ZTE.
ZTE said it maintains sufficient cash and will strictly adhere to its commercial obligations.