Bloomberg: U.S. Department of Commerce may solve the ban on export of ZTE within two weeks

According to Bloomberg News, the US Department of Commerce may issue a statement this week or next week that ZTE may be able to resume operations within 3-4 weeks. In this case, ZTE's loss is about 1-1.5 months of revenue, but there will be no case where existing customers switch to other suppliers. In view of the impact of this incident on confidence, ZTE will want to finalize more overseas operations in the next 12 months. Business customers may be more difficult.

ZTE's more likely outcome is that the U.S. Department of Commerce will temporarily lift the export ban, but will also conduct further investigations and negotiations. This may mean that ZTE will also face more penalties and stricter scrutiny.

Another possible outcome is that the U.S. Department of Commerce concluded that ZTE’s problems are inadvertent and not a major problem. Therefore, the export ban will be lifted and there will be no penalty. It will only affect ZTE’s internal compliance. Increased review; but the first case mentioned above is more likely.