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Severing ZTE's Head Leaves the U.S. Battling a Hydra

Bloomberg
Severing ZTE's Head Leaves the U.S. Battling a Hydra

Penalties meted out by the U.S. on ZTE Corp. were meant to punish the company for breaking trade sanctions. They certainly hurt its shareholders. Stock in the Chinese telecoms equipment maker plunged as much as 41.5 percent to the lowest in a year Wednesday in Hong Kong, as trading resumed after being suspended since mid-April. ZTE won’t be the only one to feel the impact of this pay-for-play deal by the Trump administration. Source: Bloomberg A $1 billion fine to be paid to the U.S. Department of Commerce before Aug. 8 is enough to wipe out a year of operating profit. What’s more, ZTE is required to get rid of its board and senior management at both the parent company and affiliate ZTE Kangxun Telecom