Commerce Department Bans U.S. Companies from Selling to ZTE

The U.S. Department of Commerce has banned American companies from selling components to leading Chinese telecom equipment maker ZTE Corp for seven years for violating an agreement in a sanctions violation case, U.S. officials said. The U.S. action could be devastating to ZTE since American companies are estimated to provide 25 percent to 30 percent of the components used in ZTE’s equipment, which includes smartphones and gear to build telecommunications networks.