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ZTE lost billions due to US ban

Image Credit: Flickr / Kārlis Dambrāns

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 (opens in new tab) 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

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.