ZTE’s production activities reportedly returned to normal service and its carrier network business is on track for growth in 2019, as the vendor begins to recover from a US import ban which crippled its business.
Newly elected chairman Li Zixue revealed the news at the company’s annual shareholder meeting, reported Reuters, stating that as of today (29 August) the vendor’s “operating business has resumed completely,” adding the company’s production targets for August had normalised and “R&D is resuming rapidly”.
ZTE was forced to suspend its operations shortly after a US government order in April which banned US companies from selling equipment to the vendor.
The company, however, reached a settlement with the government in July for it to resume operations. ZTE agreed to overhaul its board and management as part of the settlement, and pay a fine of up to $1.4 billion.
Also speaking at the shareholder meeting, new CEO Xu Ziyang (who was appointed as a result of the overhaul) said despite its recent troubles, the company “is still in the front line in the communications industry”.
“Our orders have been great and are in line with that of July and August last year,” he said, adding its network operating business will resume a normal growth path in 2019.”
Bloomberg estimated the company lost at least $3 billion after suspending its operations following the US fracas.
As part of its recovery efforts, ZTE recently secured financing of around $10.5 billion to rebuild its business. The company aims to boost research and development in the future for key components including chips, as well as strengthening ties with third party chip makers, added Xu.Subscribe to our daily newsletter Back