ZTE, the Chinese telecommunications giant, collapses on the stock market, losing 24,81% in Hong Kong – dropping to a two-year low, following the US Senate's approval of the provision on the reintroduction of the veto on the sale of US components imposed on the Shenzen group in April.
The suspension of exports was decided in April after ZTE had violated a previous agreement from 2017 which sanctioned the ban on exports to Iran and North Korea and the replacement of some top management, which was never implemented.
The US Senate has approved the National defense authorization act with the support of 85 out of 100 senators, confirming the seven-year ban approved two months ago. The other Chinese giant, Huawei, was also involved in the new veto. In fact, the Senate provision blocks sales of Huawei products to US government agencies while leaving open the possibility for the Chinese manufacturer to purchase American technological components.
This decision goes against the trend to the agreement made at the beginning of the month between the American Commerce Department and the Shenzhen group, which provided for a fine worth one billion dollars, another four hundred million in a guarantee deposit and the replacement of the group's executives, in exchange for the cancellation of the tender.
Arkansas Republican Senator Tom Cotton, one of the promoters of the amendment, recalled the "risk to national security" and the need to "stop the theft of intellectual property, prevent infiltrations into our communications networks and prevent the violation of the right to privacy of our citizens”.
Senator Marco Rubio of Florida and Democratic leaders such as Chuck Shumer of New York State and Elizabeth Warren of Massachusetts have also pressed for the provision against ZTE to be included in the National Defense Authorization Act.
ZTE had decided at the end of last year to invest in Italy and to create its European headquarters in the peninsula with the aim of expanding the 5G network and develop new technologies. "We have been in Italy for more than ten years and we intend to increase our investments more and more by focusing on 5G, the new standard destined to grow and which will be fundamental in overcoming the digital divide", said Hu Kun, CEO of ZTE Italia .
