updating: The President of the United States himself chirps about ZTE And its war of survival - and makes it clear that he and the President of China are working together to find the solution that will allow the company to return to normal operations, including guidance on the matter for the United States Department of Commerce, which was the one to decide on the boycott.
It seems that we will not need to wait seven full years until we see the maker of smartphones and telecom equipment making a big comeback to Western markets.
Original article: The Chinese company boycotted by the US government announces that it will find it difficult to continue operating under the new situation. Do as well Huawei Should you begin to be afraid?
Until recently it was considered ZTE One of the world's most significant smart device names, with significant market share in the United States and great innovations and aspirations expressed by sub-brands such as Axon and Nubia - but today that situation seems far from a fantasy, with the seven-year confiscation sentence declared The U.S. Department of Commerce requires the company to publicly declare its operations frozen.
ZTE, whose most prominent business is in communications equipment for operators Mobile phones Commercial, rather than smart devices for private users, has been accused of illegally passing comprehensive products Technology From American companies to Iran and North Korea, which are subject to tough commercial sanctions. ZTE Was billed no less than $ 1.2 billion under this proceeding, and was required to take action against various 35 employees in the company who were defined as responsible for the illegal business - and after a year when most of those senior executives remained in their jobs without any consequences, the United States decided even more extreme step and declared Prohibition of trading between all US companies andZTE For a period of at least seven years.
The US decision surprised ZTE and the entire business world, and now it seems that the large Chinese company that is partially traded (while another share of the Chinese government belongs) is beginning to internalize the magnitude of the problem they face - declaring that they have to stop operating in all business areas Now, due to the lack of ability to manufacture, repair and even maintain their products without the critical spare parts coming from American companies such as Intel, Qualcomm, Western Digital And others.
The official announcement shows cautious optimism that its boycott or guidelines will soon be softened and allow ZTE to return to normal commercial operations, while concluding that the company has sufficient financial resources to survive this challenging interim period - but it is a very interesting development in any case. To threaten a company as well Huawei Which is under similar investigation these days in the United States for suspected sharing of private information of users with government agencies in China.
A similar possible boycott will also significantly hurt Huawei, despite the fact that it is based on processing chips it develops independently - because even the built-in Android services Google, For example, enter under the prohibition of American trade.
Do-to-ZTE Is there any chance of recovery from this human blow she received? It doesn't sound particularly optimistic right now - but it is a saga that will certainly be interesting to follow in the future.