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But labor costs rose and sales of more expensive items such as clothes fell 20 percent.

But before Barr could speak a word, two of the panel's top Democrats questioned him about his handling of the Mueller report and to what extent it will be publicly disclosed.

But since the late 1990s, Penney struggled with weak sales and heavier competition from discounters and specialty chains that were squeezing its business from both ends. Penney's began flirting with bankruptcy nearly a decade ago when a disastrous reinvention plan spearheaded by then CEO Ron Johnson caused sales to go into free fall. Johnson drastically cut promotions and brought in hip brands that turned off loyal shoppers. As a result, sales dropped from . 3 billion during the fiscal year that ended in early 2012 to billion a year later. Many longtime customers walked away and have not returned. Johnson was fired in April 2013 after just 17 months on the job.

But he said beyond technical considerations, there may be "geopolitical grounds" for the government to ban Huawei's equipment. Both New Zealand and Australia have joined a United States-led company boycott.

But Vanke later confirmed that Baoneng has expressed support for the new board.