It’s been unclear what would become of ZTE for the past few weeks following an export ban against the company earlier this year by the US government. Now, it’s been revealed that the company is ceasing major operations.
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According to Reuters, ZTE has ceased all major operations following the US export ban it faces, following a failure to have the ban reversed or modified.
If you’ll recall, this ban prevents ZTE from using any products which are exported from the United States in its various products. For its smartphone business, this cuts out the use of Qualcomm chipsets and possibly even Android itself (or at least Google’s services). That makes a huge impact, as many have noted that using alternatives such as MediaTek chipsets would remove ZTE’s competitive advantage.
ZTE faces this ban following the results of a court case settlement which it didn’t fully live up its end of the bargain on.
Apparently, ZTE will still continue to operate for now, but sales from the company’s own store and multiple outlets has already stopped. A ZTE employee also mentioned that employees are reporting to work as usual, but “with not much to do.”