ZTE expects to lose at least 20 billion yuan ($3.1 billion) in the wake of a US technology ban that has factories halting operations as clients cancel deals with the embattled Chinese phone maker, Bloomberg reported Tuesday.
ZTE, the fourth-largest smartphone maker in the US, has been dealing with a US Commerce Department denial order that prevents American businesses from selling hardware or services to the company. The seven-year ban, which forced ZTE to followed the government's determination that ZTE violated terms of a 2017 settlement by failing to fire employees involved with illegally shipping US equipment to Iran and North Korea.
The ban has spooked customers, causing some to break already sealed deals, Bloomberg reported. The Shenzhen, China-based company has been spending an estimated 80 million to 100 million yuan in daily operational expenses, while most of its 75,000 employees sit idle, sources told the news outlet.
ZTE had been working to get the denial order overturned and had. Earlier this month, President Donald Trump sent a surprising tweet on ZTE that called for the Commerce Department to find "a way to ."
However, the House Appropriations Committee unanimously approved an amendment to a bill that would uphold sanctions against the company, delivering a sharp rebuke to Trump.
Security: Stay up-to-date on the latest in breaches, hacks, fixes and all those cybersecurity issues that keep you up at night.
Blockchain Decoded: CNET looks at the tech powering bitcoin -- and soon, too, a myriad services that will change your life.