This could be the end for ZTE.
ZTE's been in hot water with the U.S. government for most all of 2018, and that tension appears to have finally come to a head. According to Reuters, ZTE's officially stopping all major operations as a result of a Denial Order the Secretary of Commerce issued in April.
Per an exchange filing that was issued on Wednesday, May 9 –
As a result of the Denial Order, the major operating activities of the company have ceased. As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations in compliance with laws and regulations.
Following this, ZTE's halted sales on its official websites and other online stores where its products are sold – including Alibaba's Taobao (one of the largest e-commerce sites in the world).
Employees are apparently still showing up to work, but one anonymous worker said that there's "not much to do." Some are hopeful that the Chinese government will be able to step in and get the U.S. to lift the ban, but the likelihood of that is pretty bleak considering current tensions between the two countries.
The Denial Order that's causing all this trouble prevents ZTE from using any exported products from the U.S. for seven years, including hardware and software. ZTE said in late-April that it would fight the United States' actions, but it looks like that fight may be coming to a rapid end.
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