ZTE Corp, the Chinese telecoms equipment maker, is estimated to have lost more than $2bn in revenue since the imposition of a ban on the supply of US components by Washington last month, according to calculations based on last year’s figures.
Although Beijing and Washington are said to be close to a deal to grant a reprieve from US sanctions that nearly destroyed ZTE, the damage to the Chinese telecoms group’s prospects could linger as suppliers and clients take long-term decisions on their supply lines.
ZTE reported full-year revenues of Rmb108.8bn ($17bn) in 2017, or an average of $1.4bn a month. The US ban on supplying parts to ZTE — after the group was found to have violated sanctions against North Korea and Iran — was imposed roughly six weeks ago, implying lost revenues of more than $2bn.