ZTE stops sales due to US ban! The Chinese try to negociate new terms

- Adrian Ungureanu

ZTE stopped any sales after the US authorities banned them from buying and using technology and/or components from US companies.

As ZTE buys components and technology from US companies, including Qualcomm, from which it buys Snapdragon chipsets, the Chinese company chose not to sell any products either on its official website or on other channels.

If you did not know, ZTE was caught importing products containing US technology to countries with US embargo, such as Iran and North Korea. The Chinese company has admitted its blame, they received a fine of 900 million dollars, and has agreed to punish employees who have approved imports to Iran and North Korea. ZTE has not fully complied with the terms of the agreement. When they were summoned to the report, they couldn’t prove they complied with all the terms so the Denial Order was put in effect, thus US companies can’t supply the Chinese with any components or techs.

The company appealed after the US authorities allowed them to do so, although they did not have any court to address it. ZTE is now trying to negotiate either a change or withdrawal of the Order.

As far as products are concerned, ZTE suffers from both mobile phones, because it can no longer use Qualcomm’s Snapdragon processors, but also on the communications equipment, the most important component of the Chinese business that has many customers, including US companies, both in the US and globally. Companies like Nokia, Huawei or Nokia are among ZTE’s clients so if the Chinese can reverse the ban, they might have to switch to other network gear suppliers.

It’s not the only problem ZTE has with US authorities. A week ago, the Pentagon announced that Huawei and ZTE smartphone would no longer be sold on US military bases around the world, and announced they would seek a way to ban their use of military bases also.