Commerce Blocks China's ZTE From Exporting Sensitive Tech From U.S.

The Commerce Department has determined ZTE made false statements to the Bureau of Industry and Security in 2016 and 2017 related to "senior employee disciplinary actions the company said it was taking or had already taken," the department said in a statement Monday.

ZTE did not disclose the fact it paid full bonuses to employees who engaged in illegal conduct, and failed to issue letters of reprimand, the department said.

"ZTE misled the Department of Commerce. Instead of reprimanding ZTE staff and senior management, ZTE rewarded them. This egregious behavior cannot be ignored," Commerce Secretary Wilbur Ross said in the statement.

The denial order against ZTE comes amid brewing tensions between the U.S. and China that have raised concerns of a trade war between the world's two biggest economies. President Donald Trump has threatened tariffs on $150 billion in Chinese imports in retaliation for alleged violations of intellectual property rights, while Beijing has vowed to retaliate on everything from American soybeans to planes.