Connect with us

Hi, what are you looking for?

THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle



ZTE stock tumbles after settlement

ZTE takes 1-2 punch in last week

On Wednesday, tech firm ZTE resumed trading for the first time in eight weeks after the US Commerce Department issued a ban on all domestic exports to the company. Moreover, the US government banned American companies from trading their supplies to the Chinese tech company because ZTE ignored sanctions on North Korea and Iran.

After a $1.4 billion settlement and an agreement to overhaul their entire management, ZTE will no longer be banned (pending any further action from the White House). However, ZTE is far from recovery from this settlement. Indeed, their stock is down more than 40% on their first trading day.

Plus, the company must recreate its executive team within 30 days; after this, it must also open its doors to US inspection and create more public transparency about its practices. And although these tasks may seem simple, an overhaul of any company will almost certainly create a detrimental learning curve.

Everyone above the senior vice president level, the board of directors, and any executives tied to the misdoings will be replaced by July 8th.

ZTE plans on resuming work as soon as possible, and they will also deliver their first quarter report soon, accounting for the lawsuit. Although ZTE may be one of the global leaders in telecommunications equipment with a market value of $19.3 billion, they took a big hit with this settlement and opening day.

The firm may be able to overcome this dramatic shift for the company, but they will need to play by the rules this time around if they want to see their company survive.


Featured image via Wikimedia Commons

Comment Template

You May Also Like


US Style Trailblazer Iris Apfel Passes Away, Leaving a Lasting Legacy Renowned American designer and fashion icon Iris Apfel passed away at 102. Known...


US Manufacturing Contracts Deeper, but Glimmers of Hope Emerge In February, U.S. manufacturing faced further challenges as a key measure of factory employment dropped...


U.S. Court Gives Green Light to Land Exchange for Rio’s Arizona Copper Mine In a contentious decision, a U.S. appeals court ruled on Friday,...


US Views Declining Trade with China as Potentially Positive The United States’ top trade official, Katherine Tai, has suggested that the steep decline in...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.