ZTE is no longer manufacturing telecom equipment. The Chinese firm announced today that it has stopped all “major operating activities” in its Shenzhen, China, factory after the Trump Administration announced last month that the company was banned for seven years from using components made in the U.S. The ban was instigated after the U.S. Commerce Department found that ZTE had failed to comply with the terms of a U.S. sanctions case.
Trading of ZTE’s shares have also been suspended. The company said in a press release that it maintains “sufficient cash and strictly adheres to its commercial obligations subject to compliance with laws and regulations.” It also said that it is working with the U.S. government to either modify or reverse the ban.
ZTE makes smartphones (and is the No. 4 smartphone vendor in the U.S.), and it also makes optical equipment that is used in telecom networks. For competitive optical equipment vendors like Ciena and Huawei, ZTE’s ongoing troubles could be a win.