China’s ZTE seeking smartphone fix as US ban threatens access to Android

ZTE Corp executives are investigating software options for the company’s smartphones after a US technology ban threatened to cut off the operating system at the heart of its devices, a source said.

The Android operating system, designed by Google, is the core of ZTE smartphones, powering their apps and other services.  

The US Commerce Department on Monday banned American firms from selling parts and software to ZTE for seven years. The move was sparked by ZTE’s violation of an agreement that was reached after it was caught illegally shipping US goods to Iran.

The move threatens to further complicate relations between the United States and China. The two countries have already proposed tens of billions of dollars in tariffs in recent weeks, stoking fears of a full-blown trade war that could hurt global supply chains as well as business investment plans.

ZTE lawyers have been meeting with Google officials about the issue, according to the source with knowledge of the matter, who asked not to be identified because the talks were private. 

Google declined to comment and ZTE has not responded to requests to comment.