Tag: ZTE

ZTE Stock Surges After US Lifts Ban

ZTE Stock Surges After US Lifts Ban

Stocks of Chinese telecoms giant ZTE climbed 17% after it was confirmed that the US supplier ban imposed on it had been lifted. However, analysts warned that the company’s business in the country is still largely uncertain due to a number of major challenges. Nikhil Batra, senior research manager at consultancy IDC, says that the company will have to rethink its overall design strategy as it will have to find substitutes for suppliers such as Avnet, Qualcomm, Broadcom etc to reduce its reliance. Aside from the $1 billion penalty ZTE had to pay the US Treasury, Batra says the company […]

ZTE US Operations to Resume After Sealing Deal with Government

ZTE US Operations to Resume After Sealing Deal with Government

It was announced this week that Chinese telecoms giant ZTE will be resuming its operations in the US after a three-month ban for illegally shipping its products to Iran. ZTE signed an escrow agreement with the US Commerce Department where the company will be depositing $400 million to lift the ban. ZTE had already paid $900 million last year, in addition to another $1 billion penalty that it had incurred. The Commerce Department said that the ZTE settlement has been the toughest penalty and strictest compliance regime the department has ever imposed in such a case. Source: Reuters

ZTE Drops More Executives, Gets Temporary Reprieve from US Govt

ZTE Drops More Executives, Gets Temporary Reprieve from US Govt

The US government this week reportedly granted temporary reprieve to China’s ZTE Corp, allowing it to conduct business needed to maintain existing networks and equipment while working to lift the supplier ban that was imposed on it. Reuters said that the U.S. Commerce Department’s Bureau of Industry and Services authorization runs from July 2 until Aug. 1. ZTE also revealed in exchange filings last Tuesday that one other senior executive had left. However, a source said that seven other, including the vice presidents of legal, finance and supply chain departments had been removed in a radical overhaul of its management. […]

ZTE Unveils New Board to Lift US Ban

ZTE Unveils New Board to Lift US Ban

Chinese telecom giant ZTE revealed this week a new board in fulfillment to an agreement it entered with the US government to lift the ban on its business in the country. According to exchange filings last Friday, Li Zixue was elected as the company’s new chairman, while the old board and senior management, headed by Chairman Yin Yimin, have submitted their resignation on June 29. Even though the company had already paid a $1 billion penalty and put $400 million in an escrow account as part of the deal, the U.S. Department of Commerce still has to work out the […]

US Senate Votes to Reimpose Sanctions on ZTE

US Senate Votes to Reimpose Sanctions on ZTE

The deal struck by the Trump administration to let ZTE resume its business in the US may soon be negated as the Senate passed this week the National Defense Authorization Act, a military funding bill, which includes a provision that would retain sanctions on the Chinese telecom giant. The Senate version of the NDAA, which passed 85 against 10, will now be sent to the conference committee to reconcile differences with a version passed by the House of Representatives last May. However, it is said that the sanctions may still not make it out of the conference period before it […]

Congress May Block ZTE’s Bid to Resume US Operations

Congress May Block ZTE’s Bid to Resume US Operations

It is said that in the coming weeks, the US Congress may block the Trump Administration’s move to allow Chinese telecommunications giant ZTE to resume its business in the US when the Senate votes on the measure as part of the National Defense Authorization Act (NDAA). If the defense policy bill passes, it may be possible for the ZTE provision to get thrown out during the negotiations for the final version of the NDAA. The House NDAA includes a separate provision prohibiting the US government agencies from using “risky” technology from ZTE or Huawei, which are considered to be “linked […]

White House Trade Adviser To ZTE: “Three Strikes and You’re Out”

White House trade adviser Peter Navarro threatened Chinese telecoms giant ZTE last Sunday that it will be shut down if it it caught engaging in another illegal activity. ZTE had recently entered an agreement with the US government to lift that ban on its business in the country. However, the Shenzhen firm had to pay a $1 billion fine and reshuffle its most senior executives in the process.   Navarro also said that President Trump’s stance on ZTE will help build goodwill with China and revealed that even though the Chinese company had been a bad actor, its deal with […]

US Senator Queries Google, Twitter Links to Huawei

US Senator Queries Google, Twitter Links to Huawei

Democratic senator Mark Warner said last Thursday that he had asked Google parent company Alphabet Inc. and Twitter if they had any data sharing agreements with any Chinese vendors, similar to those that Facebook revealed this week. Warner specifically asked Alphabet if it had any partnerships with Chinese companies ZTE, Lenovo, and TCL, and Twitter if it had any agreements with Huawei. Warner, who is the vice chairman of the Senate Intelligence Committee, reiterated that Huawei’s close ties to the Chinese Communist Party is an area of national concern.   Source: Reuters

ZTE Issues Apology, Pays $1 Billion Fine

ZTE Issues Apology, Pays $1 Billion Fine

ZTE, China’s second largest telecommunications equipment manufacturer, agreed to pay a hefty fine of $1 billion in order to resume its operations in the US. The company’s chairman also reportedly issued an apology to customers and staff after finalizing its agreement with the US to lift the ban which had been in place since April. However, experts say that it would take ZTE at least a month to resume shipping phones, on top of job cuts, wage reductions, and potential customer loss as the company reshuffles it senior management. Source: Reuters

ZTE Signs Agreement to Lift US Ban

ZTE Signs Agreement to Lift US Ban

Sources have said this week that China’s second largest telecommunications manufacturer had signed an agreement in principle so that it can resume doing business in the US. However, A Commerce Department spokesman said last Tuesday that “no definitive agreement has been signed by both parties.” A number of lawmakers from both parties had expressed resistance to ZTE’s resuscitation and accused the Trump administration of caving into pressure from Beijing. U.S. Senate Democratic leader Chuck Schumer even said that the president, who roared like a lion is governing like a lamb when it comes to China if he lets ZTE off […]