ZTE Swings to a Loss After Being Hit by $1 Billion-Plus U.S. Fine

The transcript discusses the financial and operational challenges faced by ZTE, a major Chinese telecom company, due to US sanctions related to violations involving North Korea and Iran. ZTE faced significant financial losses and had to agree to a board reshuffle, a hefty fine, and external oversight to lift the US technology ban. The company is now working to ramp up production and regain trust among its customers, while still facing political pressures in Washington.

What was the financial impact on ZTE due to the sanctions violations?

• A loss of just under 800 million U.S. dollars

• A profit of 250 million U.S. dollars

• A profit of 1.3 billion U.S. dollars

• No financial impact

What actions did ZTE take to comply with US demands?

• Reshuffled its board and agreed to external oversight

• Acquired a US company

• Increased production

• Launched a new product line

What was the total fine ZTE agreed to pay as part of the US settlement?

• 1.4 billion U.S. dollars

• 2 billion U.S. dollars

• 750 million U.S. dollars

• 500 million U.S. dollars

What is one of the key challenges for ZTE's new board?

• Increasing employee salaries

• Convincing customers of their reliability

• Expanding into new markets

• Reducing production costs

What political pressures does ZTE face despite the White House's efforts?

• Pressure to merge with another company

• Pressure to increase exports

• Pressure to reinstate penalties

• Pressure to reduce workforce