ZTE stock falls after USA penalties over Iran, North Korea

  • ZTE stock falls after USA penalties over Iran, North Korea

ZTE stock falls after USA penalties over Iran, North Korea

Perdue's statement on Wednesday echoed concerns from the White House over including a provision blocking the ZTE deal in the defense bill.

Commerce Secretary Wilbur Ross last week announced the US reached a deal with ZTE that includes a record fine, changes to the company's board and management and USA compliance officers.

Even if the provision is included in the Senate's defense bill, it would still need to survive a conference with the House.

But Trump then announced in mid-May that he was working with Chinese President Xi Jinping to find a way to get ZTE back into business. But thanks a new bipartisan amendment to the upcoming "must-pass" National Defence Authorization Act, it seems ZTE's one remaining lifeline would disappear by retroactively reinstating the original seven-year ban.

ZTE is back in business: What now?

A woman passes by a ZTE building in Beijing, China shortly after President Donald Trump tweeted about possibly reversing a ban on the tech giant in May. It's a stunning turnaround, though it had been signalled for some weeks.

Dealing in the firm was suspended in April after United States authorities banned American businesses from trading with ZTE for 7 years due to alleged violations of the trade sanctions against Pyongyang and Tehran by the staff, which the Chinese corporation didn't punish. However, it wouldn't be the first time the President chose the unexpected route. Senators on both sides of the aisle criticized Trump for calling on the Commerce Department to reverse its position, with many saying ZTE poses a risk to U.S. national security.

The deal implemented a $1 billion penalty against ZTE and required the addition of a US -chosen compliance team to monitor the company. The Commerce Department placed additional sanctions on the company after it failed to follow through with its reorganization plan and lied to the US government about it.

Cotton called ZTE a "repeat bad actor that should be put out of business", adding: "I and obviously every other senator believes the death penalty is the appropriate punishment for their behaviour".

Senate Majority Leader Mitch McConnell (R., Ky.) said that passing the defense measure is at the top of his to-do list this week. Rubio supports the new language in the defense bill.