ZTE shares set to resume trading after US reprieve

June 12, 2018
Trading of ZTE shares in Hong Kong and Shenzhen had been halted since April 2018

Shares in Chinese smartphone maker ZTE are set to resume trading in Hong Kong Wednesday, after the company reached a settlement with American authorities for violating US sanctions.

Trading of ZTE shares in Hong Kong and Shenzhen had been halted since Washington announced in April it had banned American companies from selling crucial hardware and software components to the .

The seven year ban came after US officials said ZTE had failed to take action against staff who were responsible for violating trade sanctions against Iran and North Korea.

In a statement released late Tuesday, the firm said: "Application has been made by the Company to the Stock Exchange for the resumption of trading of the H shares of the Company on the Stock Exchange with effect from 9:00 am on 13 June 2018."

Earlier this month, Washington and Beijing reached a deal to ease sanctions that had pushed the telecoms equipment maker to the brink of collapse.

Under the agreement, ZTE will pay a $1 billion penalty and put another $400 million in escrow to cover possible future violations.

ZTE, which is based in the southern city of Shenzhen, will also be required to change its entire board of directors and hire outside legal compliance specialists who will report to the US Commerce Department for 10 years.

In return, Washington will strike the company from a sanctions list.

The company was fined $1.2 billion last year for the initial sanctions violations.

The ZTE saga has been a key bone of contention in the tussle between the world's two biggest economies over trade policy and sensitive technologies.

Explore further: US, China reach $1.4 bn ZTE deal as signs emerge of trade talks progres

Related Stories

ZTE petitions US government to lift sanctions

May 7, 2018

Chinese telecom giant ZTE has asked the US government to lift a ban on sales to the company, which threatens its survival and has added to trade tensions between Washington and Beijing.

US, China near deal to save ZTE: report

May 22, 2018

The United States and China have a tentative deal to save embattled Chinese telecom company ZTE, days after the two nations announced a truce in their trade standoff, The Wall Street Journal reported Tuesday.

China's ZTE vows to fight US supplier ban

April 20, 2018

Chinese telecom giant ZTE vowed on Friday to fight back against a US order banning it from purchasing and using US technology for seven years, a move that has angered Beijing.

Recommended for you

Technology near for real-time TV political fact checks

January 18, 2019

A Duke University team expects to have a product available for election year that will allow television networks to offer real-time fact checks onscreen when a politician makes a questionable claim during a speech or debate.

Privacy becomes a selling point at tech show

January 7, 2019

Apple is not among the exhibitors at the 2019 Consumer Electronics Show, but that didn't prevent the iPhone maker from sending a message to attendees on a large billboard.

China's Huawei unveils chip for global big data market

January 7, 2019

Huawei Technologies Ltd. showed off a new processor chip for data centers and cloud computing Monday, expanding into new and growing markets despite Western warnings the company might be a security risk.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.