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Stock Market

ZTE shares rise nearly 4 percent after US politicians opt against sanctions

The Chinese telecom company continues its recovery from the crippling ban.

ZTE research institute , located in Tianjin Binhai New Area

ZTE's stock rose Monday after the company came out of US political wrangling unscathed.

Zhang Peng

ZTE shares jumped by up to 3.8 percent in Hong Kong trading early Monday after US lawmakers removed penalties against the telecom from a defense bill.

The Chinese company's shares climbed to 15.20 HK dollars ($1.94), according to Reuters, compared to to 16.12 HK dollars ($2.05) at this point last week.

The stock was still 40 percent lower than it was in April, the news gathering service noted, when trading was suspended for two months after the ban.

A US Senate amendment to the National Defense Authorization Act would've reinstated sanctions against ZTE, which was banned by the Commerce Department in May after the government determined that the company violated terms of a 2017 settlement by failing to fire or punish employees involved with illegally shipping US equipment to Iran and North Korea.

The seven-year ban left the company crippled until President Donald Trump tweeted that he wanted the Commerce Department to work with ZTE on getting it lifted. In June, the Commerce Department made a deal requiring the company to pay a total of $1.7 billion in penalties.

The deal was opposed by a bipartisan group of senators -- Marco Rubio (R-Fla.), Chris Van Hollen (D-Md.), Tom Cotton (R-Ark.), Mark Warner (D-Va.), Roy Blunt (R-Mo.) and Bill Nelson (D-Fla.) -- who wanted to use the bill to block it, The Hill reports.

However, lawmakers agreed to abandon that effort on Thursday, according to Bloomberg.