Chinese ZTE posted $ 1 bn Losses Over US sanctions

China’s ZTE Corp, engaged in the production of telecommunications equipment and smartphones, received 7.8 billion yuan (about $ 1.1 billion) in losses in the first half of 2018 because of the US sanctions.

ZTE’s revenue fell 27%, to 39.4 billion yuan reported that in the first six months of the year. Last year, the telecommunications giant reported a profit of 2.3 billion yuan.

In April, Washington banned American companies to sell components to ZTE. Washington slapped restrictions after it found the firm broke the terms of its settlement resolving earlier violations of U.S. sanctions on Iran and North Korea.

In early May, ZTE temporarily stopped “core production activities,” but on June 7, US Secretary of Commerce Wilbur Ross announced that he had cut an agreement with ZTE, under which the company would be able to return to the US market after paying a $ 1 billion fine.

Later on, ZTE head Yin Yimin apologized to employees, shareholders and customers for a $ 1 billion fine that the company had agreed to pay.

The US Democratic Party had urged its members to refrain from using ZTE and Huawei smartphones.




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