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Because of a Ban on Buying U.S. Parts

ZTE, a major Chinese phone company and the country’s second-largest manufacturer of telecom network equipment, may have been finished off by a U.S. ban on its purchase of American components. The ban stemmed from ZTE’s violation of sanctions on Iran and North Korea.

The company said in a Wednesday investor note that, as a result of the U.S. “denial order, the major operating activities of the company have ceased.”

ZTE got hit with a fine of almost $900 million last year for evading the embargo on telecom equipment exports to Iran, by using U.S. components in devices that it sold there. It had also violated sanctions on North Korea by selling equipment there.


Will be very interesting to see what happens to South Africa's MTN that was acquiring this equipment.