08:15 GMT +322 August 2018
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    This picture taken on May 3, 2018 shows the ZTE logo on an office building in Shanghai

    Chinese Telecom Giant ZTE Resumes Trading, Drops 39% After Deal With US

    © AFP 2018 / Johannes EISELE
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    Dealing in the firm was suspended in April after US authorities banned American businesses from trading with ZTE for 7 years due to alleged violations of the trade sanctions against Pyongyang and Tehran by the staff, which the Chinese corporation didn’t punish. This issue has become one of the key problems in a trade war between the two countries.

    China telecom giant ZTE got back into business Wednesday after a two-month suspicion, instantly plunging 39% during Hong Kong morning trade.

    The ZTE settlement came days after Beijing reportedly offered to boost purchases of American goods by $70 billion in order to fight a trade imbalance with the United States, while US President Trump has demanded a $200 billion reduction in its trade deficit with China over two years.

    On June 5, ZTE Corp signed an agreement that would lift a US Commerce Department ban on purchases from US suppliers, allowing China's second-largest telecommunications equipment maker to get back into business. However, the corporation would have to pay $1 billion in penalties, adding another $400 million in escrow in order to cover possible future fines.

    READ MORE: China Must Strengthen BRICS Ties Amid US Pressure

    In April, the US prohibited the telecom equipment maker from acquiring parts from US companies, including Qualcomm, Corning, and Google, over suspicions that ZTE might have supplied equipment to Iran and North Korea.

    Zhongxing Telecommunications Equipment (ZTE) Corporation is a Chinese company headquartered in Shenzhen, Guangdong, China.

     

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    US-China trade war, Sanctions, shares, ZTE, China
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