ZTE Might be the First Victim of the US-China Trade Standoff, Halting Major Operation

ZTE said on Wednesday in a public filing that it has halted "major operating activities" after a US ban against the company became effective.

The firm does not provide details on which operations are affected, but says that it has enough cash to fulfil its commercial obligations in the public filing.

According to a New York Times report on Wednesday, the firm has halted manufacturing at its plant in Shenzhen.

In addition, some of ZTE’s products such as smartphones and telecommunications equipment appeared to no longer be for sale online on Wednesday, various media reports indicate.

If ZTE goes out of business, it would be the first major victim and the most dramatic development in the trade war between China and the US.

Last month, the US Commerce Department banned ZTE from buying parts and services from American firms until 2025 as the Chinese firm violated US sanctions on North Korea and Iran and lied to the US about whether the employees involved were punished.

While denying that it did not take sufficient corrective actions, ZTE said last month that its business would be severely impacted by the sanctions.