Chinese Technology giant ZTE, was found by the US Commerce Department in April to have violated trade bans with North Korea and Iran. Following the findings, the company was banned and prevented from buying any parts from the United States suppliers.
This ban forced ZTE to suspend major operations which led to trading in its shares to be halted in April. Last week, the US reached a deal with the Chinese company that would remove the ban. Some of the conditions to the deal is for the company to pay $1 billion penalty, hire a US-approved compliance team and to replace its management board.
ZTE, is China’s second biggest telecoms maker based in Shenzhen. The company depends on US-made components for the production of handsets. The firm’s share were down by 10% in the early trade in Shenzhen, which is the maximum allowed on the mainland.
However, the US Senate leaders are expected to vote later this week on an amendment to a bill that could block the agreement between the Trump administration and ZTE.
(Source: BBC News)