Chinese telecom equipment manufacturer ZTE has suffered losses of roughly $3.1 billion due to its ban from the US, reports have claimed.
ZTE basically went out of business when the US banned its companies from supplying ZTE with parts. The ban was put in place after it was unveiled that ZTE exported its products, built with US-made parts, to North Korea and Iran, countries under US embargo. By doing so, ZTE has broken an agreement it had with the States.
To mitigate the losses, US president Donald Trump suggested the country give ZTE a ‘life-saving concession’, a move which was criticised by many officials.
Now, however, Bloomberg is reporting that ZTE has a plan to put its factories back in full throttle hours after a deal between the two countries is finalised and the ban is lifted.
The two countries are currently in negotiations and, as we recently reported, they are close to coming to an agreement. Sources which wanted to stay anonymous have said that the two sides have come to a ‘handshake agreement’ which will see China reduce tax on US agricultural products, and increase the import of US-produced food.
The States will, in return, lift the ban on ZTE, but the company will still need to make some organisational and managerial changes.
Image Credit: Flickr / Kārlis Dambrāns