ZTE Corp. estimates losses of at least 20 billion yuan ($ 3.1 billion) from a US technology ban that halted major operations as clients withdraw from transactions and expenses, said people familiar with the matter. [19659003Elfabricantedeequiposdetelecomunicacionesyteléfonosinteligentessinembargotienelaesperanzadellegaraunacuerdoprontoyyatieneunplandenominado"T0"paraponerenfuncionamientolasfábricasociosasencuestióndehorasunavezqueWashingtonaceptelevantarsumoratoriadesieteañosenlascomprasdechipsycomponentesestadounidensesdijeronlaspersonasquepidieronnoseridentificadashablandodenegociacionesprivadasLacompañíanoquisohacerningúncomentario
ZTE, based in Shenzhen, China, depends on EE components. UU., As the chips of Qualcomm Inc., to build their smart phones and network equipment. The ban, for violating the terms of an agreement on sanctioning sales to Iran, has almost paralyzed China's second largest telecommunications equipment manufacturer and has been embroiled in a trade dispute between the two largest economies in the world. On Tuesday, President Donald Trump said he reconsidered US sanctions as a favor to Chinese President Xi Jinping and could fine the company with more than a billion dollars.
Read more: How could ZTS fall back from the edge after Trump? Tweet
The action of EE. UU It has scared potential customers during the crucial IT spending season of the first half and has even led some to breach agreed-upon agreements, people said. ZTE is spending between 80 and 100 million yuan on daily operating expenses alone, while most of its 75,000 employees are inactive, people said.
But he hopes to increase quickly once an agreement is reached: thousands of workers wait for their time. The time in the company's dormitories is ready to flood their factories once the green light is given, people said.
It is unclear what ZTE can do to request a pardon, although it is expected to reorganize executives and possibly its board of directors. Chinese government officials, however, are conducting negotiations on behalf of ZTE and the company, which does not have much influence in the process, will have to accept the terms of any agreement reached between Beijing and Washington.
Read more: China Rising Tech Star Seen & # 39; Half Dead & # 39; After US Ban
ZTE had problems for the first time in 2016 for violating laws that restricted the sale of US technology to Iran. An agreement in 2017 required the company to pay up to $ 1,200 million and penalize the workers involved, in what was the largest criminal fine for the Department of Justice in a case of export control or sanctions.
But in April, the Commerce Department said that ZTE paid full bonuses to employees who participated in the illegal conduct, did not issue letters of warning and lied about the practices to US authorities. That triggered the seven-year suspension, and its shares have been suspended from trade in Shenzhen and Hong Kong since then.
Tensions could easily scale. There have been concerns that the United States will impose a similar ban on ZTE in China's largest telecommunications and mobile carrier, Huawei Technologies Co. Bloomberg News reported last month that the United States is conducting extensive investigation to determine whether Huawei violated the sanctions against trading with Iran, similar to the accusations against ZTE.
The moratorium on ZTE threatens a large number of components needed to find equipment for customers such as China Mobile Ltd. and [ Telefónica SA] of Europe. The Chinese firm relies on suppliers of chip manufacturers Qualcomm and Micron Technology Inc. for optical developers and Acacia Communications Inc. The ban can also prevent the company from using Google's Android operating system the Heart of your smart phones. .
– With the help of Yuan Gao