telecoms giant ZTE projected a net loss of Rmb6.2bn-7.2bn ($0.89-1.04bn)
for 2018, underscoring the devastating impact of its brief ban on doing
business with US companies earlier this year.
The projected loss compares to a 2017 profit of Rmb4.57bn, and was
announced with the company’s quarterly results on Thursday after the
close of market trading in Hong Kong and Shenzhen, where ZTE is listed.
ZTE and Huawei are by far China’s biggest telecoms equipment companies,
and are on an international push to win 5G contracts. But ZTE’s survival
was threatened in April after being cut off from its US suppliers. In
May it announced it had “ceased operations”.
The US commerce department had ruled the company had violated a
settlement on the export of goods to countries on a no-export list,
specifically Iran and North Korea. But the US lifted the ban in July,
after talks between the Chinese and US presidents.