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ZTE Corp's (0763.HK) (000063.SZ) main business operations have ceased due to a ban imposed by the USA government, but China's second biggest telecom equipment maker is trying to have the ban modified or reversed, it said on Wednesday. Last month, the US Commerce Department blocked US firms from selling parts or providing services to ZTE until 2025.

There's more trouble for the Chinese telecommunication giant ZTE, as is in the process of ceasing all major operations in the US.

ZTE said it maintains sufficient cash and will strictly adhere to its commercial obligations.

ZTE sent an internal memo to its employees stating that the firm has been "proactively communicating with relevant departments of the U.S government", according to the South China Morning Post.

In a separate filing last week, ZTE said that it would not rule out taking legal actions against the export ban.

ZTE was accused of violating United States sanctions on North Korea and Iran, as well as lying to USA officials.

The company is ZTE, and it makes smartphones, tablets and other tech devices. A request for suspension of the ban has been submitted last Sunday.

In addition to this ban, the company faces several other issues related to US trade.

The ban imposed on ZTE by the Department of Commerce makes it illegal for US companies to sell any products and services to the company; but how did it reach this stage? Not only did ZTE agree to participate in routine monitoring and auditing, but it was also placed on a list of companies USA suppliers are banned from doing business with unless there is government approval. The penalties prescribed by the U.S. Commerce Department included withholding bonus checks and issuing letters of reprimand to those involved.

Those actions hit the company hard.


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