The government banned US companies from supplying key components to China’s second-largest telecom equipment provider ZTE. Well-knowing insiders pointed out that if most banks did not exempt a clause related to the suspension of ZTE’s stock trading, their US$450 million loan would face default. Bloomberg reported that those who were not allowed to speak publicly and asked for anonymity pointed out that ZTE is negotiating with the bank to waive a clause that stipulates that if ZTE's shares traded on the Hong Kong and Shenzhen Stock Exchanges are suspended for more than 14 consecutive trading days , or be terminated, will face default. ZTE has not yet responded to this. The U.S. Department of Commerce suspected that ZTE would violate the sanctions ban. Despite the previous settlement with the U.S. side, it continued to violate the settlement agreement to sell products to Iran and North Korea. It prodded the US company from supplying US-made chips and components to ZTE for 7 years. ZTE has suspended trading in Hong Kong stocks and Shenzhen stock market since April 17.
