ZTE Corporation (ZTCOF)

[Investors3]

The United States has cracked down on one of China's biggest tech companies, banning it from buying components from American firms.

http://money.cnn.com/2018/04/17/technology/zte-china-us-phones-ban/index.html?iid=ob_article_hotListpool

The move Monday by the US Commerce Department against ZTE (ZTCOF), which sells smartphones and other telecommunications equipment around the world, comes amid a tense clash between the United States and China over trade and technology.

On the same day, ZTE also received a blow from the UK government, which warned telecom companies against using the Chinese firm's equipment and services.

The US Commerce Department said that ZTE lied to American officials about punishing employees who violated US sanctions against North Korea and Iran. The Chinese company agreed to pay a $1.2 billion fine last year after a US investigation found it had illegally shipped telecommunications equipment to Iran and North Korea.

Related: China's ZTE: We must do more to reassure US officials

But instead of punishing those involved, "ZTE paid full bonuses to employees that had engaged in illegal conduct, and failed to issue letters of reprimand," the Commerce Department said in a statement.

As a result, the department said it has imposed a seven-year export ban on ZTE, forbidding American companies from selling parts and providing services to it.

ZTE's smartphones use microchips from Qualcomm (QCOM) and glass from Corning (CNIG).

ZTE said in a brief statement Tuesday that it is aware of the US ban.

"At present, the company is assessing the full range of potential implications that this event has on the company and is communicating with relevant parties proactively in order to respond accordingly," it said.

The company's shares were suspended from trading in Hong Kong on Tuesday following the US announcement...