The US Department of Commerce has banned American companies from selling components to Chinese telecom equipment maker ZTE for seven years after breaking an agreement reached after it was caught illegally shipping goods to Iran, US officials said on Tuesday (AEST).
The US action, first reported by Reuters, could be devastating to ZTE since American companies are estimated to provide between 25 and 30 per cent of the components used in ZTE's equipment, which includes smartphones and gear to build telecommunications networks.
