US Ban On ZTE Pushes China To Ramp Up Chip Development

  • US Ban On ZTE Pushes China To Ramp Up Chip Development

US Ban On ZTE Pushes China To Ramp Up Chip Development

"We hope that the U.S. doesn't take any further steps to damage confidence in the American business environment", Hua said at a regular press briefing.

The US forbade expert of communications technology to Iran as part of its sanction against certain regimes, including North Korea.

Visitors pass in front of the Chinese telecoms equipment group ZTE at MWC 2018.

This news follows Huawei's recent announcement on April 18 that it would be shifting its focus to existing markets and away from the us, and that came as a response to back-to-back attacks against the company from the USA government since the beginning of the year.

On April 19, China's Ministry of Commerce (MOC) said that the USA action against ZTE will damage itself. After all, Huawei has been in the USA government's cross hair perhaps longer than ZTE. Chinese battery and electric carmaker BYD, chip maker Taiwan Semiconductor Manufacturing Corp. According to one of them, the criminal inquiry grew out of an earlier sanctions-violation probe that ultimately led to penalties against another Chinese technology company, ZTE Corp. The company failed to comply with the punishment set forth by the U.S. Commerce Department and now is banned from receiving U.S. exports until March 2025. The Department of Justice has opened an official investigation of Huawei that could have wide-ranging implications for its business.

It said it was committed to complying with the order and USA export control regulations "while seeking a resolution to the matter on all available fronts and with the support of many of our business partners".

The US Justice Department is investigating whether Huawei violated Iran sanctions, The Wall Street Journal reported, citing unnamed sources.

Around 40 Chinese mutual funds have adjusted the valuation of ZTE in their portfolios since it suspended trading.

The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of USA companies. SASAC went on to add that not only do the actions (and sometimesinaction) taken by ZTE harm its own business operations, but also suppliers and other companies that it depends on. Verizon later followed in AT&T's footsteps and dropped plans to sell Huawei phones, according to a Bloomberg report. -China trade war, the person said.