According to the Nikkei News, the U.S. government launched a ban on ZTE’s exports on the grounds that it violated its commitments. ZTE is prohibited from purchasing US parts and software in the next seven years. According to foreign media analysis, this move will not only give ZTE Corporation a Bring great difficulties, it will also affect the global telecommunications industry supply chain.
According to a Nikkei insider quoted in the Nikkei News, “We are prohibited from making phone calls or communicating with U.S. business partners such as Qualcomm, Intel or Broadcom.” The insider expressed his intention to resign.
According to reports, telecommunications parts purchased by ZTE in the past could last for one month, but at present, the company’s manufacturing has basically stopped.
In 2016, the U.S. government accused ZTE of violating regulations and exporting products to Iran and other countries. It then fined 900 million U.S. dollars. ZTE acknowledged some wrong practices and signed a settlement agreement. However, this time, the U.S. government did not believe that ZTE did not comply with its commitment to internal employees. Punishment.
Foreign media pointed out that the U.S. government’s sanctions order will also affect the global telecommunications industry.
In the global smart phone market, ZTE is expanding its market share. The number of smart phones delivered last year reached 43 million, ranking ninth in the world. Among the smart phones manufactured by ZTE, 70% are for export, and half of them are exported to the U.S. market. According to statistics, in the US smart phone market, ZTE has about 12% share, ranking fourth.
The impact of the US Sanctions Order on ZTE originated from the company’s dependence on the U.S. technology industry. Among ZTE’s smartphones, 30% of its parts came from the United States. Important suppliers of ZTE include Intel and Qualcomm.
Software is also another issue. Almost all smartphones currently run two major operating systems, Apple’s iOS or Google’s Android, ZTE uses Google’s licensed Android. The seven-year export ban means that ZTE may not be able to use Google’s authorized Android system. .
It should be pointed out that Google provides free Android open source code. If Google's official version of Android is banned, ZTE can still use the open source version of Android, but will not be able to obtain Play Store and other Google software that is popular worldwide and is indispensable to users. .
The sanctions will affect ZTE's expansion in 5G networks. Currently, 5G is considered as a growth point in the telecommunications industry. In February, ZTE had just announced cooperation with Intel and Qualcomm in the 5G field.
The Nikkei News pointed out that the impact of the ZTE blockade will exceed the scope of China. The blockade order and Sino-US trade war will damage a group of American companies.