Business

US Bans American Firms From Selling To Chinese Tech Company ZTE

The U.S. Department of Commerce announced a seven-year ban on telecom equipment maker ZTE on Monday.

US Bans American Firms From Selling To Chinese Tech Company ZTE
Getty Images
SMS

The U.S. has banned American firms from selling components to a major Chinese tech company.

The U.S. Department of Commerce announced the seven-year ban against telecom equipment maker ZTE on Monday.

The agency said ZTE broke the terms of an agreement it made with the U.S. last year. That agreement came after the company illegally shipped equipment to Iran and North Korea.

Xi Jinping Says China Will Lower Tariffs On Car Imports
Xi Jinping Says China Will Lower Tariffs On Car Imports

Xi Jinping Says China Will Lower Tariffs On Car Imports

The Chinese president's announcement came the same day the World Trade Organization announced China filed a complaint against the U.S.

LEARN MORE

Secretary of Commerce Wilbur Ross said in a statement: "ZTE misled the Department of Commerce. ... This egregious behavior cannot be ignored."

The move comes as trade tensions between the U.S. and China continue to escalate

But the Department of Commerce said the decision is a "regulatory action" and is "unrelated to any ongoing trade-related actions."