Advertisement
Why ZTE is so important to China’s tech industry
China has many tech giants, but ZTE is one of the few to have a global impact
Reading Time:2 minutes
Why you can trust SCMP
0
A crippling ban. A desperate message from the chairman. And now an apparent reprieve by the President of the United States.
It’s been a rollercoaster ride for ZTE over the last month, when the US government punished the company for making false statements during an investigation into illegal sales to Iran.
ZTE was banned from buying hardware, software and other components from American suppliers for seven years -- a tough sentence for a company that Reuters says sources up to 30% of its components from the US. The company later said it would effectively stop operating.
Then, a Sunday surprise: A tweet from President Trump.
OK, Trump tweeting is not a surprise. But the content of the tweet certainly was:
ZTE’s survival would save jobs: The company employs 75,000 people. But it goes beyond that, because China has many tech giants -- but ZTE is one of the few Chinese tech companies to be truly global.
It’s the fourth biggest smartphone maker in the US, behind only Apple, Samsung and LG. At a time when other Chinese smartphone makers are trying just to enter the country, ZTE is already there -- and thriving.
Advertisement