ZTE’s U.S. ban has resulted in the Chinese firm losing $11 billion in market valuation. However, from Jefferies had placed a buy rating on its stocks on the Hong Kong stock exchange.
In a significant development, ZTE Corp has received a temporary reprieve from the U.S. Commerce Department’s Bureau of Industry and Services government. The move will enable it to conduct business required to maintain its existing equipments and networks as it works towards the lifting of the U.S. ban.
In April 2018, the United States slapped the Chinese tech firm with a supplier ban since it had conspired to evade and break U.S. sanctions on North Korea and Iran.
The authorization by the U.S. Commerce Department, valid from July 2 to Aug. 1, 2018, allows ZTE to continue operating existing networks and equipment as well as provide customer support for its handset contracts signed before April 15.
The authorization also permits limited transfer of funds to or from ZTE.
As part of the deal with U.S. authorities, ZTE had promised to significantly overhaul its management. On Tuesday,in a stock exchange filing, ZTE disclosed that had booted one of its senior executive, while a source stated, seven other members of the board were also removed.
Those that were removed include ZTE’s vice presidents Wang Keyou, Xie Jiepeng and Ma Jie, who were responsible for the company’s legal, finance and supply chain departments, respectively.
The source preferred the cover of anonymity given the sensitivity of the matter.
It is not lucidly clear whether these departures are related to ZTE’s compliance violation.
Midst an intensifying U.S.-China trade tensions ZTE’s shares have fallen by 60% since the resumption of trading last month and has wiped out more than $11 billion of the company’s market valuation.