U.S. senators seek punishment if China’s ZTE violates deal -Reuters
What happened: Bipartisan US lawmakers have introduced a bill that could reimpose sanctions on ZTE if it does not fully comply with the country’s laws and the agreement that it inked with the Trump administration. Since the ban was lifted, lawmakers have sought to clamp down on the telecommunications giant.
Why it’s important: Moves to block the company have so far failed due to opposition from the administration. However, Senate aides believe that the latest measure could get support from congressional leadership. ZTE suffered devastating losses as a result of the US imposing a ban on the company that prohibited it from sourcing American components. The action was taken as a result of ZTE violated US sanctions on Iran and North Korea. As a result, the company made a net loss of RMB 7.8 billion in the first half of 2018. However, it is expecting to see third-quarter profit—if no unexpected moves are made against it.