>> Shares in troubled Chinese telecom giant ZTE plunge by 40% on Wednesday, wipping nearly $3 billion dollars off its market value. The company resume trade in the morning after two month from the Hong Kong Kong stock exchange after ZTE agreed to pay a fine of up to 1.4 billion to the U.S government.
The company is China's second largest telecoms maker. But it's become wrapped up in the wider web of trade politics between Washington and Beijing. It's been a key focus of bargaining between the two sides to avoid and all out trade war. Operations at ZTE essentially ground to a halt since April after it was slapped with a US sales ban.
That was punishment for breaking a deal struck with US authorities last year when it got caught illegally trading with Iran and North Korea. As trade talks unfolded in Beijing weeks ago, China's leader, Xi Jinping, asked Donald Trump to put ZTE back on its feet. But the company won't get out of the ban until it pays up the big fines and sticks 400 million more in escrow at a bank approved by the US.
That's in line with conditions Trump set last month.>> By shutting them down, we're hurting a lot of American companies, really good American companies. I envision perhaps, new management, new board of directors, very tight security rules.>> ZTE confirmed Tuesday, it would get a new board and lets say they expect the company to pay the penalty within days, resume operations next week.
Meanwhile time is running short on trade tensions between the US and China. This Friday is when Washington is said to unveil the final list of Chinese products targeted by US tariffs.