ZTE has lost at least $3.1 billion due to US sanctions

Bloomberg reports citing unnamed sources that the Chinese smartphone maker ZTE has calculated a loss of about $ 3.1 billion due to the imposed US sanctions.

Despite the significant loss, ZTE is said to be hopeful that a deal with the US government can be struck in the near future. According to the sources, the company has a plan in place to restart shut down factories as soon as the US lifts the trade ban on American companies. Under this ban, they will no longer be able to supply components to ZTE for seven years. The manufacturer declined to comment to Bloomberg.

President Trump is said to be working with the Chinese government on a deal that would lift the import ban, while China would replace ZTE’s management and executives. Under the agreement, ZTE must also pay a $1.3 billion fine.

Whether it will come to that is the question. There is a lot of resistance in the US Congress to Trump’s proposal. Politicians on both sides say Trump has caved in to Chinese pressure and ZTE has admitted to violating sanctions imposed on Iran. The Republican-dominated House of Representatives is considering a proposal to ban the sale of products from Chinese companies such as ZTE and Huawei until intelligence officials say the products are safe.