China’s ZTE apologizes after paying ‘disastrous price’ in U.S. sanction case

HONG KONG, China- On Friday, After the Chinese technology firm agreed to pay a $1 billion fine to the United States, the chairman of ZTE Corp. apologized in front of staffs and customers to end up the supplier ban that had slow down the business.

The deal allowed China’s second-largest telecoms equipment firm to restart their operations, reforming supplier relationships and rebuild trust with global clients.

But industry experts have estimated that it would take approx. one month for ZTE to export phones again after the removal of the ban, while employees were scared about the job cuts, wage reductions and a potential loss of customers

On Thursday, after a long discussion, the company finally decided to pay the fine and restore its leadership to lift the ban which was a difficult time for the company since April.

In a letters sent to staffs on Friday by the company, ZTE Chairman, Yin Yimin felt sorry to employees, clients, shareholders and business partners and replied that the firm would look to learn from its errors and will also take a strict action for it and also hold those responsible accountable for the held errors.

Yin wrote, “This issue reflects problems that exist with our firm’s compliance culture and at management level”. He also added, “The activation of the denial order has caused huge losses for the company. The firm has paid a disastrous price.”

Liu, an office worker said that he was not worried about the firm making major staff cuts or failing. “I’m not planning on looking for a new job.”

ZTE, smartphone seller company, was ranked the fourth-biggest in the United States in the first quarter of the year with an 11.4% market share.

by Sawan Kumar on June 9, 2018

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