ZTE Communication is forbidden to talk with Qualcomm/Intel etc.

Sina Technology reported that the U.S. government banned U.S. technology companies from selling products to ZTE last week. This move will not only affect ZTE, but will also have a huge impact on the global communications equipment supply chain. According to ZTE insiders, the company It is forbidden to call or conduct technical exchanges with Qualcomm, Intel, Broadcom and other business partners from the United States. Some media reports indicate that although ZTE’s current inventory components can support production for about one month, ZTE’s actual production is currently underway. The pace has gradually eased. ZTE and the U.S. Department of Commerce reached a settlement agreement in March 2017. The U.S. government believes that ZTE violated a U.S. ban between 2010 and 2016 and exported telecommunications equipment to Iran and North Korea. , And hide these transactions through shell companies. ZTE acknowledged this practice and agreed to pay a fine of 1.19 billion U.S. dollars to suspend the implementation of the 7-year export embargo. However, during the delay in the implementation of the embargo, ZTE Corporation continues to provide false statements, causing the U.S. Department of Commerce to launch ZTE as 7-year ban.

Some people believe that this move by the United States is a crackdown on smart phone manufacturers supported by the Chinese mainland government and the Chinese communications industry, because ZTE is a listed state-owned enterprise in mainland China. ZTE Corporation last year became the world’s ninth-largest smartphone manufacturer. Shipments of 43 million units, of which about 70% of the equipment was exported overseas, about half of the equipment entered the US market. According to statistics, ZTE has a market share of about 12% in the US smart phone market, and this share has become the US market. The fourth largest smart phone manufacturer. In terms of key technologies, ZTE relies heavily on its U.S. partners. The U.S. ban will undoubtedly have a huge impact on this; ZTE manufactures smart phones, and U.S. suppliers provide all parts at all About 30% of the components, and ZTE annually imports a large number of processors from American chip makers such as Intel and Qualcomm. In addition to hardware, software is also a huge problem that ZTE will face. ZTE manufactures mobile phones. Is an Android system, but the U.S. ban may prevent ZTE from using it for the next 7 years This system.

In addition, the U.S. ban is also very likely to affect ZTE’s 5G network development plan. ZTE originally regarded this technology as the company’s future growth driver. At the end of February this year, the company just announced that it has been in this field with Intel and Qualcomm. Cooperation was achieved. In addition to ZTE, trade frictions between the United States and China may also hit China’s largest communications equipment manufacturer Huawei. On April 7, this year, the U.S. Federal Communications Commission (FCC) stated that it plans to ban US operations. Businesses use the Universal Service Fund to purchase equipment from 'security threat companies'. The FCC is targeting Huawei and ZTE. The US government suspects that China may use the equipment of these two companies to monitor the U.S. public. Because both Huawei and ZTE have the Chinese official background. Insiders believe that the US ban on ZTE not only hurts Chinese companies, but also ZTE and Huawei, which are the main buyers of Qualcomm and Intel chips. The trade dispute will also hurt these U.S. companies.