US senators want ban on China's ZTE, despite Trump action

US senators want ban on China's ZTE, despite Trump action

Chinese telecommunications giant ZTE Corp, which was hit with a trade ban by the United States earlier this year, expects to report a net loss of 7 billion yuan (US$1.04 billion) to 9 billion yuan in the first six months of 2018, the company said in a regulatory filing on Friday.

The punishment came after the company made false statements about disciplining 35 employees involved with violating us sanctions and illegally shipping USA -origin goods to Iran and North Korea, Commerce officials said.

We write to express our strong support for measures in the Senate-passed Fiscal Year 2019 National Defense Authorization Act (FY 2019 NDAA) that would reinstate USA government penalties against ZTE, a Chinese state-directed telecommunications company, and modernize the Committee on Foreign Investment in the United States (CFIUS). He recently wrote to the administration urgingPresident Trump to re-consider a deal with the China-based company. The telecom equipment and smartphone maker ceased most of its operations in April after the USA government imposed a seven-year ban on its purchase of crucial U.S. technologies, including chips, for allegedly violating sanctions to export goods to Iran. ZTE also replaced its entire board of directors and senior leadership. President Donald Trump has said he's prepared to put tariffs on as much as $450 billion worth of Chinese exports. The new agreement once again imposes a denial order that is suspended, this time for 10 years, which BIS can activate in the event of additional violations during the ten-year probationary period.

The U.S. Senate paved the way for a showdown with Trump over the issue last month, when it passed an annual defense policy bill with an amendment attempting to reverse the deal.

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As of Friday, ZTE was no longer on the Commerce Department's "denied persons list", Reuters reported.

~ Senators say Chinese company poses a national security threat to the US ~.

A US investigation into ZTE was launched after Reuters reported in 2012 that the company had signed contracts to ship hardware and software worth millions of dollars to Iran from some of the best-known USA technology companies.

Shares of ZTE in Shenzhen also surged by the maximum daily 10 percent following the announcement of the news.

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