On April 17, ZTE announced today that the company's shares will be temporarily suspended from 9:00 am on April 17, 2018. At the same time, all structural products related to the company also temporarily stopped trading.
Previously, the United States and the United Kingdom issued a ban to ZTE to restrict semiconductor companies from selling components to them.
According to foreign media reports on Monday, US Department of Commerce officials revealed that because of violations of the US sanctions, US companies were banned from selling components to ZTE, the Chinese telecommunications equipment manufacturer, within the next seven years.
Reuters reported that ZTE pleaded guilty in the US federal court in Texas last March and admitted that it violated the sanctions and sold Iranian goods and technology to Iran. According to the settlement agreement previously reached by ZTE with the US Treasury, the Ministry of Commerce, and the Ministry of Justice, the company agreed to pay a fine of US$890 million.
In addition, the U.S. Department of Commerce’s Bureau of Industry and Security’s US$300 million fine for ZTE can be suspended, depending on the monitoring and auditing results of ZTE’s implementation of the agreement in the next seven years.
ZTE said in its official response today that it has been informed of the U.S. Department of Commerce’s refusal to activate the company. The company is fully evaluating the possible impact of this event on the company and actively communicating with and responding to various aspects.
It is also understood that the National Cyber Security Center of the United Kingdom issued new recommendations to warn the telecommunications industry not to use ZTE's equipment and services.
The Ministry of Commerce responds to the United States to block ZTE: Ready to maintain the legitimate rights and interests of Chinese enterprises
China’s Ministry of Commerce: ZTE Corporation has conducted extensive trade and investment cooperation with hundreds of U.S. companies and contributed tens of thousands of jobs to the United States. It is hoped that the United States will properly handle the matter in accordance with regulations and create a fair, equitable and stable legal and policy environment for the enterprise.
The Spokesman of the Ministry of Commerce should ask for a speech
Some media asked: The US Department of Commerce issued an announcement last night stating that the U.S. government has banned ZTE from buying sensitive products from U.S. companies and claimed that ZTE had made false statements to U.S. officials. what opinions do the Chinese have on this issue?
The Ministry of Commerce spokesperson said: The Chinese side noticed that the U.S. Department of Commerce announced measures to control ZTE Corporation's exports.
China has always required Chinese enterprises to abide by the laws and policies of the host country in the course of overseas operations and conduct operations legally and compliantly. ZTE Corporation has conducted extensive trade and investment cooperation with hundreds of U.S. companies and contributed tens of thousands of jobs to the United States. It is hoped that the United States will properly handle the matter in accordance with regulations and create a fair, equitable and stable legal and policy environment for the enterprise.
The Ministry of Commerce will pay close attention to the progress of the situation and stand ready to take necessary measures to safeguard the legitimate rights and interests of Chinese companies.