U.S. Ban To Cost ZTE At Least $3 Billion


In recent weeks, there has been some salient battle between China and the United States. This situation resulted from the hammer which landed on ZTE, prohibiting the company from doing business with US firms. In mid-April, the US Department of Commerce Bureau of Industry and Security stated that ZTE violated the U.S. government’s sanctions ban and it prohibited ZTE from purchasing component products and software (including mobile phone processors and operating systems) from the United States for 7 years.

Now a fresh report from Bloomberg has estimated the losses of ZTE. According to the report, the Chinese company will lose about $3.1 billion if the situation is not curbed as soon as possible. As of now, there is news making the rounds that the United States will soon lift the ban on ZTE and this has been confirmed by the company. The losses could increase if an agreement is not reached in good time. ZTE claims it is ready to get back on track in a matter of hours once a deal is stuck.

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Recall that some time ago, the United States President Mr. Donal Trump showed an unusual concern with ZTE situation. He said that both countries are in talks to get ZTE back to business fast. However, the US House Appropriations Committee unanimously passed an amendment to a bill that prevents Commerce Department from changing the sanctions imposed to ZTE last month, that includes the US export ban that will end in 2025. However, it appears that a deal will be struck soon. 

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1 Comment

  1. Vampritt de Gamma
    May 24, 2018

    they should let ZTE go bust. ZTE has breached the sanctions, and was given leniency to fire those involved. instead, ZTE even awarded them with bonuses. and in court, they even lied to USA government what they did, again and again. ZTE deserve it.