ZTE shareholders meet to vote on changes that clear the way for US ban to be lifted
ZTE’s shareholders including the US$350 billion California Public Employee's Retirement System will vote on sweeping changes to meet US conditions
Shareholders of ZTE Corp will gather Friday at the Shenzhen headquarters of the Chinese telecoms equipment maker to approve sweeping governance changes, as part of conditions to be met before the US Commerce Department will lift a ban that cut off the supply of crucial American technology to the company.
Since ZTE resumed trading on June 13, its Hong Kong-listed shares have more than halved in value. Trading was suspended for almost two months after the US Commerce Department reinstated an export ban on the company for flouting the conditions of a settlement for illegal sales to Iran.
During that time, ZTE became the centre of trade talks between the US and China, with US President Donald Trump agreeing to a deal that has met with opposition in Congress.
The US Senate has passed a defence policy bill that backs President Donald Trump’s call for a bigger, stronger military but would also repeal his deal to reopen Chinese telecoms company ZTE. Meanwhile, the US House of Representatives on Thursday approved a spending bill for the US Defense Department that includes an amendment that bars the Pentagon from buying goods or services from Chinese telecommunications giants ZTE and Huawei.