A weekend gift from the Prez.
President Donald Trump appeared to throw a lifeline to China's ZTE Crop. (ZTCOY) , the China-based telecommunications giant that was banned from dealing with U.S. suppliers amid allegations it had violated western sanctions on Iran and North Korea, in a Sunday tweet that urged officials to find a way to get the company "back into business fast."
Trump said "too many jobs" had been lost in China as a result of the Commerce Department ruling on April 15 that banned American companies from providing components to ZTE after it was found to have violated a 2017 agreement that included $900 million in penalties.
President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!— Donald J. Trump (@realDonaldTrump) May 13, 2018
Trading in ZTE's Hong Kong- and Shenzhen, China-listed shares, however, have been suspended since April 17, when the DOC banned U.S. companies from acting as its suppliers for seven years and shut down its main business operations last week. The ban was in response to ZTE's failure to make good on a 2017 plea agreement related to its violation of sanctions prohibiting the shipment of U.S. products to Iran and North Korea.
"As a result of the Denial Order, the major operating activities of the Company have ceased," ZTE said on May 9. "As of now, the Company maintains sufficient cash and strictly adheres to its commercial obligations subject to compliance with laws and regulations."
ZTE is estimated to have paid more than 200 U.S. suppliers as much as $2.3 billion last year, according to a Reuters report, including $100 million each to Qualcomm Inc. (QCOM) , Broadcom Inc. (AVGO) Texas Instruments (TXN) and Intel Corp. (INTC) .