Dubai: the gate Arab news technical
Shares of ZTE Corporation ZTE Chinese the day after the United States lifted the ban on suppliers to the Americans, prompting shares to rise by 17 percent in Hong Kong to reach 16.12 Hong Kong dollars, which is less by 37 percent from its price last April when it was the suspension of stock trading for two months after the ban, warned the analysts that the maker of telecommunications equipment, China is still facing many challenges because work on the revitalization of its work.
Ministry of Commerce on Friday the ban on American companies that sell spare parts to the ZTE Corporation of China, and after that deposited the Chinese company 400 million in guarantees as part of the settlement reached last month, also included the registry also fine worth one million dollars paid by the company to the U.S. Treasury in the month of June.
Said nikhil batra Nikhil Batra, Director of research, first at the consulting company IDC IDC: “it’s a long way for ZTE to work, not only to restore the confidence of customers and ensure them, but also to work hard in order to find alternatives to the United States such as Avnet and Qualcomm pre fee and other suppliers in order to reduce its dependence, mainly, this means going back to re-think in strategy to comprehensive design”.
Jumped the shares of the company with investors ignored its forecast of achieving a net loss of $ 1.35 million during the first half of 2018, after having caused the sanctions imposed by the United States in the paralysis of its operations, the ability of the analyst Edison Lee Edison Lee working in the company Jefferies Group, the investment that ZTE suffered a loss running up to $ 600 million in the period between the months of April and June due to the suspension of its ban.
The analyst said he expects that expects the company to its customers in the field of telecommunications, non-Chinese, and to provide incentives to varying degrees to compensate for their interests and reward them for their patience and Loyalty, said people familiar with the matter said that ZTE began to communicate with customers through messages and pledged to intensify operations in the fastest time possible.
Many of the American lawmakers that ZTE pose a threat to national security, and discussed a group of senators, Republicans and Democrats, the issue of re-imposition of sanctions on the company, the cradle of the US Senate in last month’s the road to confrontation with the U.S. President Donald Trump about the issue when it agreed on a draft law on the policy of the annual payment with the modification can stop the settlement of ZTE.
And still the fate of the amendment is unclear because the Senate and House of representatives have yet to settle any of their different, there is support from the two main parties of this action among the members of Congress, but Republicans control both the Senate and the house of Representatives and leaders of political parties rarely violate the policies Trump.
Said nikhil batra: “the political nature of the issue and the fact that members of the US Senate not to approve this resolution makes things very difficult, as anything can happen”, in the others it is unlikely continuation of the ZTE to work as it was previously.
And keep the ZTE Corporation on its position as a competitive communications equipment, especially in the era of the fifth-generation networks, and may help her return to work in the re-development of networks of the fifth generation of Chinese 5G within the track, however, what remains uncertain to what extent the company can ZTE and to restore the existing clients and explore new businesses.
Shape ban a source of friction between the two governments, American and Chinese in a time of escalating trade expansion, where the ban was imposed in April after officials said the Ministry of Commerce and the ZTE made false statements about the disciplining of 35 staff after being recognized last year for violating U.S. sanctions by shipping goods and Technology of America to Iran illegally.
This has led to uncertainty concerning the ban on the shares of ZTE to erase nearly $ 11 million from the assessment of the market value of the company, as part of a deal lifting the ban, approved by the Chinese company to remove all of the members of the administration and replace it with a team again, along with the removal of any Executive Officer is linked to the error within 30 days, the Ministry of Commerce appointment of control officers to monitor their compliance with the laws of the export of America for the next decade.
Link to it from the source: the high shares of ZTE the Chinese after the lifting of the U.S. ban