China’s ZTE dives 16% on US sanctions probe

HONG KONG: Shares in Chinese telecoms giant ZTE plunged 16 percent on Thursday as it resumed trading after the US announced a probe over alleged violations of trade sanctions against Iran, which the firm admitted could lead to civil and criminal liabilities.Washington slapped restrictions on ZTE and three linked companies last month after an investigation alleged the firm illicitly re-exported controlled items from the United States to sanctioned countries including Iran.

The curbs require ZTE, China’s second-biggest telecoms equipment maker, to have specific licenses before shipping US-made items to the parent company or the other three named firms.