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COMING UP:Share Opener Variant 2

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Transcript

00:00:01
>> A Chinese telecommunications giant on Monday, paying a hefty price for breaking American rules. The US Commerce Department is banning ZTE from buying components from US companies, like Qualcomm, Microsoft, and Intel, for seven years. ZTE, a top smartphone seller in the US, pleaded guilty last year for conspiring to violate US sanctions by illegally shipping American goods and technology to Iran.
00:00:29
As part of a settlement, the company agreed to pay up to $1.2 billion in penalties, and to take action against employees who were a part of the violations. But on Monday, the Commerce Department said, the Chinese firm had failed to significantly reprimand its staff, and would now face an even harsher punishment.
00:00:51
Experts say the measure could be devastating for ZTE, as American companies provide almost 30% of the parts used in its products, which include phones and routers. Monday's news bearing down on stocks of optical component makers. Massachusetts based Acacia Communications, a key supplier for ZTE, saw its shares plummet 34%, hitting a two year low.
00:01:17
Other US telecom component makers, like Oclaro, Lumentum Holdings, and Finisar also feeling the burn with dramatic drops in their stock. The Commerce Department's action comes at a sensitive time, with trade tensions brewing between the US and China.>> China is gonna end up treating us fairly. For many years they had free reign, they don't have free reign anymore.
00:01:39
>> As President Trump has threatened punitive tariffs against Chinese imports, and Beijing vowing retaliation.