ZTE proclaims normality after imports ban, ahead of Axon 9 launch
As part of conditions it had to satisfy with the US Commerce Department to get out of an imports ban, ZTE now has a new executive board, but it also has a refound confidence.
“As of today, the main operating business has resumed completely. The production mission for August has resumed to normal and R&D is resuming rapidly,” Chairman Li Zixue told investors yesterday, according to Reuters. “We can definitely say the company is still in the front line in the communications industry.”
The company has scheduled an August 30 event in Berlin to launch the Axon 9 Pro.
The telecommunications company claimed that the months-long cut-off from components sourced from the states shuttered major operations for the past several months. The ban came from a 2012 investigation into the company’s breach of US trade sanctions with Iran and North Korea — this came as a major bargaining point in recent trade talks between the United States and China. The ban was lifted in July.
However, governments around the world have expressed increasing doubt against ZTE, fearing that links to Beijing authoritarians may compromise telecom equipment security. The company says that it will be looking to procure silicon from a more diverse portfolio of partners to reduce risk.
Ahead of an earnings report on Thursday, the company has estimated that it will have a first half loss of up to $1.3 billion. ZTE shares in Hong Kong ended trading up 3 percent today.