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ZTE Corp. Delays Release of Annual Results in Wake of US Export Restrictions

| Mar 18, 2016 08:16 AM EDT

ZTE is set to appeal on U.S. export sanctions following the failure of lobbying efforts.

ZTE Corp. announced its plans to postpone the release of the company's annual results in order to thoroughly assess the effects of the recent export restrictions handed down by the U.S. government.

A Reuters report published on Thursday revealed how the Beijing-based company was unable to finalize their annual results report after failing to determine the extent of the U.S. export ban's impact on the company.

According to ZTE, they would need more time to accomplish a "thorough self-assessment on the potential impacts of the restriction measures on the business and operation of the group."

China's ZTE was included in the companies restricted from exporting technology supplies from the U.S. after it allegedly planned to "illicitly re-export controlled items to Iran in violation of U.S. export control laws," reported Fortune.

Aside from the annual results, the company also moved their scheduled board meeting.

Meanwhile, ZTE's shares remained suspended in the Hong Kong stock exchange, which closed at HK$14.16 ($1.83), 20 percent lower than the price prior to the deferment that took effect on March 7, according to Android Headlines.

The outlet further noted that while the issue appears to be something that might take long to conclude, it is still unclear whether or not the Chinese telecommunications company would suffer long-term impacts from the prohibition.

"One thing is clear, however, is that this is becoming more and more political as time goes on," the report said. "While the U.S. and China might not see eye-to-eye on a great many things, the global economy is one area in which the two do seem to meet in the middle on."

ZTE is one of the biggest players in the global stage and is considered one of China's most prized possessions, which means the U.S. export ban may result in a violent reaction from the Asian country, thereby hindering the gradually warming relations between the two nations.

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