Stocks of U.S. suppliers to ZTE soar after Trump's comments

Updated 2018-05-15 09:44:02 Xinhua

Shares of American companies that supply chips and other components to Chinese telecom equipment maker ZTE Corp. rebounded strongly on Monday, after U.S. President Donald Trump said that Washington and Beijing are working to get the company back into business.

Shares of Acacia Communications Inc., a Massachusetts-based optical interconnect components maker selling about 30 percent of its products to ZTE in 2017, spiked 8.73 percent to 34.25 U.S. dollars apiece following Trump's remarks.

Shares of Oclaro, a U.S.-based company that made 18 percent of its revenue from ZTE in the fiscal year that ended July 1, 2017, surged 2.92 percent to 8.82 dollars apiece.

Shares of Lumentum, another U.S. firm that also does substantial sales to ZTE, jumped 2.22 percent to 64.50 dollars apiece.

All those stocks have suffered big losses since the United States imposed a denial of export privileges against ZTE on April 16.

The two sides "are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast," said Trump on Sunday in a tweet. The president added that he has instructed the U.S. Commerce Department "to get it done."

China appreciates the U.S. position on ZTE, Foreign Ministry spokesperson Lu Kang said Monday, adding that China is keeping close communication with the United States on specific details and issues that the U.S. side is concerned about.

Trump's words came ahead of a new round of trade consultations between the two sides later this week.

Analysts said that the latest development in trade tensions between the United States and China, the world's two largest economies, eased concerns about a potential trade war.

ZTE, one of the world's largest telecom equipment makers, was forced to suspend its main operations worldwide after the U.S. Commerce Department prohibited American companies from exporting products to it in mid-April.

As the fourth-largest mobile phone supplier in the U.S. market, ZTE said it has estimatedly supported some 130,000 high-tech jobs in America.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58October 18 2018 12:34:47

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16October 18 2018 12:34:47

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18October 18 2018 12:34:47

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords