We recently passed along a report regarding ZTE’s export ban in the US. The ban by the US Government has ZTE foreclosing much of its business and terminating employment, and the last we heard had the company appealing for a modification of the ban. Despite us thinking this would not happen, it appears that China and US President Trump are negotiating to provide some much-needed relief to ZTE and its subsidiary, Mediatek.
It has been all but rare, this year, to see the government involved in tech related news. To shine some light on the ZTE sequence of events, it appears US President Trump is getting the outcome he wants in reduced sanctions on ZTE. The fact Trump pulled for this is surprising let alone.
According to Reuters, the Chinese headquartered company might get a bit lucky. The ban might be lifted despite ZTE clearly breaking export rules, thanks to positive strides made between ZTE’s homeland of China and the US. The settlement allowing ZTE to resume business entails the exchange of China agreeing to buy more American goods. It also has China adjusting its tariffs. This was truly unexpected. It’ll soon be seen just how bad China wants to help ZTE shall this agreement with the US go official, which could take some time.
ZTE is one of China’s biggest OEMs and telecom equipment providers, but the company also has a presence in the US. Over the last few months, the US Government has accused many Chinese OEMs of spying on American citizens and corporations on behalf of the Chinese government. Having already blocked Broadcom’s acquisition of Qualcomm to protect national security, and telling the American public not to buy Huawei phones, I’m surprised this situation is ongoing. This is a positive sign for companies looking to expand their products to the US, though let’s not get ahead of ourselves.
From what began as a broken rule with a punishment has since evolved into something much bigger between two of today’s largest nations. The ins and outs are still confusing, and for our sake as we pertain to Android, we just hope ZTE can stay in the market. We’ll continue to keep you updated as we gain clarification.