BusinessCompany News


Chinese Tech Company Shuts Down 'Major' Operations After US Ban

ZTE's announcement comes after the U.S. banned American companies from selling any components to it.
Posted at 4:37 PM, May 09, 2018

A Chinese tech firm has shut down most of its company after the Trump administration took steps to distance the U.S. from its products.

The company is ZTE, and it makes smartphones, tablets and other tech devices.

In April, the U.S. banned American companies from selling any components to the tech company, and earlier this month the government banned sales of ZTE products on U.S. military bases.

Those actions hit the company hard. In an announcement Wednesday, ZTE said "major operating activities" have stopped. 

Many view the Trump administration's actions as an attempt to slow down China's tech industry. Others note the actions against ZTE could foreshadow the effects of a U.S.-China trade war.

ZTE said it's trying to negotiate with the U.S. government to get the recent bans overturned.