China's ZTE sees heavy losses in H1 due to USA penalty

REUTERS  Carlo Allegri  Illustration  File

The ban lift will allow ZTE, China's second-largest telecommunications equipment maker, to resume business with US companies.

Lawmakers have expressed concern that removing the company's seven-year restriction on receiving parts from US suppliers could pose national security risks.

Because ZTE relies on USA suppliers to make its smartphones.

The Commerce Department had said it would remove the ban after ZTE paid a $1 billion penalty and placed $400 million in a U.S.

"The substantial decrease in results was mainly due to operating losses and provision for losses resulting from the suspension of the major operating activities", ZTE said in the exchange filing.

In April, the Commerce Department barred ZTE from importing American components for its telecommunications products for the next seven years, practically putting the company out of business. "President Xi of China and I are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast".




The Chinese company is accused of selling sensitive technologies to Iran and North Korea, despite a USA trade embargo. ZTE pleaded guilty previous year over the sanctions violations.

Many U.S. lawmakers see the company as a national security threat and, on Thursday, a group of Republican and Democratic U.S. senators urged that ZTE's penalties be reinstated.

The company also was required to replace its board of directors, retain outside monitors and put Dollars 400 million in escrow to cover any future violations - a final step it took this week.

The Commerce Department said Friday that these measures were the "harshest penalties and strictest compliance measures ever imposed in such a case".

The U.S. Senate paved the way for a showdown with Trump over the issue last month, when it passed an annual defense policy bill with an amendment attempting to reverse the deal.

Related news:

Hot News

isis-killer-beheading-video-story-top France winger Kylian Mbappe wins Sky Sports World Cup Power Rankings
Jul 16, 2018 - 13:43
It was a very hard game, Croatia played a great game". "The win is not about me, it's the players who won the game". And with his reputation now sky-high, he said he will take time to consider his future.

See the adorable official photos from Prince Louis' christening
Jul 16, 2018 - 11:28
The photo is Meghan's first official royal portrait since her own wedding photos were taken back in May. The christening of Prince Louis has been marked by the release of a collection of family photographs.

isis-killer-beheading-video-story-top I feared Serena might die, says husband
Jul 16, 2018 - 11:13
And Williams' husband, Alexis Ohanian , shared a story putting into perspective just how much Williams had come back from. Following her crushing defeat at the hands of Angelique Kerber , Williams' made an impassioned speech for moms everywhere.

isis-killer-beheading-video-story-top Apple refreshes its Macbook Pro laptops with 8th gen Intel CPUs
Jul 16, 2018 - 11:12
Anyone hoping for an update to the cheaper Macbook Pro models which don't have this divisive feature have not been updated . Apple's Macbook Pro keyboard design has been under fire recently for its rate of failure and high cost to replace.

isis-killer-beheading-video-story-top Lovren Looking for Recognition, Henderson Reveals Hamstring Injury
Jul 15, 2018 - 19:41
Even before the World Cup kicked off, the Liverpool defender seemed to think if any Croatian squad can, it's this one. Liverpool and Croatia Dejan Lovren wants to be recognised as one of the best centre-backs in the game.

isis-killer-beheading-video-story-top China trade surplus with United States hits record $29bn high
Jul 15, 2018 - 19:35
But countries like South Korea, Singapore and Taiwan could all be affected too because of disruption to supply chains, he added. The website was told to post only stories about the trade conflict by state news agency Xinhua, rather than publishing its own.

isis-killer-beheading-video-story-top Wimbledon 2018: Serena Williams beats Julia Gorges to enter finals
Jul 15, 2018 - 19:30
And her serve, widely regarded as the greatest in women's tennis , once again packs its daunting punch and placement. The 29-year-old had served more aces (44) and hit more winners (199) than any other player in the first five rounds.

isis-killer-beheading-video-story-top Kevin Anderson to face Novak Djokovic in Wimbledon final
Jul 15, 2018 - 18:25
I wish I could have had one. "At the end you don´t even feel that great out there, but at the same time I´m through to the final". Yet Djokovic's ferocious will to win, sprightly movement, stubborn defence and brilliant efficiency have all returned at SW19.

isis-killer-beheading-video-story-top Twitter to remove suspicious accounts
Jul 15, 2018 - 17:22
This is because Twitter It is cleaning itself from the accounts which it has recently blocked. Even Twitter founder Jack Dorsey got hit, to the tune of 200,000 followers.

isis-killer-beheading-video-story-top Chelsea's incredibly short send off to Antonio Conte
Jul 14, 2018 - 12:12
Jorginho is expected to join Sarri from Napoli but star man Eden Hazard continues to be linked with a move away from west London. Negotiations for the highly-rated manager's payoff have accelerated over the last 48 hours and are nearly completed.

isis-killer-beheading-video-story-top 'Nasty' Number 10 beats Boris Johnson to his own resignation
Jul 14, 2018 - 00:06
"We're extremely confident in the ability of the United Kingdom to plough through this issue with Brexit and move on", he said. He said he still believed May should follow his advice. "That's certainly up to the people - not up to me".

isis-killer-beheading-video-story-top Arsenal head coach Unai Emery wants to have five captains
Jul 13, 2018 - 14:02
Emery said he plans on keeping three goalkeepers in the first-team squad, and that he hasn't decided on a No. 1 yet. But it is true that I really like Verratti.

isis-killer-beheading-video-story-top USA companies in China mostly oppose tariffs, survey shows
Jul 13, 2018 - 13:59
China says it will respond to the new tariffs that President Trump has asked his administration to prepare. China has, in recent years, become a key export market for growing USA energy exports.

isis-killer-beheading-video-story-top Nawaz Sharif, Maryam in UAE, to reach Lahore by 6:15pm
Jul 13, 2018 - 13:25
A second stint in power was ended by a military coup in 1999, prompting a period in jail for Sharif and years in exile in London. The Papers showed Sharif and his children (including Maryam) owned offshore companies in the British Virgin Islands .

isis-killer-beheading-video-story-top Have Croatia been disqualified from the World Cup? Obviously not
Jul 13, 2018 - 12:50
It hurts, it hurts a lot", Kane said after the match at the Luzhniki Stadium. Harvey and Jack go through England's World Cup exit and the World Cup Final.