ZTE Is Said to Face at Least $3 Billion in Losses From U.S. Ban
Wednesday, 23 May 2018 10:45 WIB |
ZTE Corp. is estimating losses of at least 20 billion yuan ($3.1 billion) from a U.S. technology ban that™s halted major operations as clients pull out of deals and expenses mount, people familiar with the matter said.
The telecoms gear and smartphone maker however is hopeful of striking a deal soon and already has a plan in place -- dubbed œT0 -- to swing idled factories into action within hours once Washington agrees to lift its seven-year moratorium on purchases of American chips and components, said the people, who asked not to be identified talking about private negotiations. The company declined to comment.
Shenzhen, China-based ZTE depends on U.S. components, such as chips fromQualcomm Inc., to build its smartphones and networking gear. The ban, for breaching terms of a settlement over sanction-breaking sales to Iran, has all but mothballed China™s second-largest telecoms gear maker and become entangled in a trade dispute between the world™s two largest economies. On Tuesday, President Donald Trump said he™s reconsidering U.S. penalties as a favor to Chinese President Xi Jinping and may instead fine the company more than $1 billion.
Source : Bloomberg