China’s ZTE sees third-quarter profit after first-half loss on U.S. supplier ban – Reuters
What happened: Chinese telecommunications giant ZTE expects to make a profit in the third-quarter of 2018 after the worst performance in its history during the first six months of the year, in which it reported a net loss of RMB 7.8 billion. The company said it expects to post a net profit of between RMB 24.2 million ($3.54 million) and RMB 1 billion ($146.40 million) in the quarter ending September 30.
Why it’s important: In April, ZTE was banned from sourcing American-made components after it violated US sanctions on Iran and North Korea. The ban was lifted after the company paid $1.4 billion in penalties and agreed to impose radical changes in upper management. Both ZTE and Huawei have faced challenges to their overseas businesses, with the US and Australia moving to limit the use of the companies’ infrastructure within their borders. These moves, along with the punitive measures imposed on ZTE, have chilled relations between China and the US.