Forbes magazine’s online edition recently published an article by research company Atherton Research Vice President and Chief Analyst Jean Baptiste Su, saying that due to the latest US sanctions, China’s telecom equipment maker ZTE will Unable to operate, and will apply for bankruptcy within a few weeks.
As we all know, ZTE has encountered a lot of trouble. On Monday, the U.S. government issued a 7-year ban that prohibits U.S. companies from selling hardware and software to Chinese telecommunications equipment manufacturers.
ZTE is China's second largest telecommunications provider, second only to its competitor Huawei, and the fourth largest telecommunications provider in the world. The company sells to global carriers (China Mobile, Deutsche Telekom, Softbank, Telefonica, etc.) Network infrastructure (eg 4G, wireless, servers, routers, etc.) and Android smartphones.
For all types of equipment manufactured by the company, ZTE requires a large number of key hardware and software components manufactured by US companies, including processors, memory, optics, antennas, screens, operating systems or from Google, Intel, Micron Technology, and Qualcomm. Other company applications.
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The U.S. export ban effectively prevented the Chinese company from obtaining all U.S. technology, resulting in the closure of the company's factory and the suspension of sales.
Even with ZTE's capabilities, ZTE needs many years to redesign all its products and find replacements for US-made components.
Therefore, we can't take any products to sell and miss the important 5G transformation revolution. We expect that ZTE Corporation, a company listed on the Hong Kong and Shenzhen stock exchanges, will apply for bankruptcy within the next few weeks. At the same time, we It is also believed that many U.S. companies will also be subject to different levels of marketing due to the loss of ZTE's large customer, which includes providing Qualcomm chips to most Chinese smartphone manufacturers.
With the fall of ZTE, Huawei will undoubtedly be the biggest winner. However, this Shenzhen company has recently been scrutinized by the US government for its concerns about national security. Its final fate may not be much better than that of ZTE.
As previously reported, Huawei is currently reducing its activities in the U.S. market and began to abolish U.S. employees.
Finally, every mature or fast-growing Chinese technology company, including Lenovo/Motorola, OnePlus, OPPO, TCL, Vivo and Xiaomi, should always pay attention to the US decision-making process and respond to any technical ban.
On the other hand, the development prospects of LG and Nokia in the United States and even in the world have become more clear instantly.