ZTE In Danger Of Losing Android OS License
- Author: Arturo Norris Apr 20, 2018,
Apr 20, 2018, 20:36
The US Commerce Department said ZTE had violated the terms of a sanctions settlement announced past year, which saw the Chinese firm paying fines for shipping telecoms equipment illegally to Iran and North Korea.
In its first detailed response since Washington banned the company this week from buying USA -made components for seven years, ZTE said the move will "severely impact the survival and development of ZTE".
The action came after the US Department of Commerce slapped a fine of US$1.9 billion on ZTE for a violation of a sanction on Iran imposed by the US.
China's Ministry of Commerce (MOC) said Thursday that the U.S. action against ZTE will damage itself.
Sympathy for ZTE has swept Chinese social media while most domestic newspapers have chosen to put the lion's share of the blame for the telecom equipment maker's troubles on China's heavy reliance on foreign semiconductors.
Meanwhile, Britain also took an action against ZTE. ZTE did not respond to calls and emails seeking comment.
That goal has been given fresh urgency after a US ban on sales of products - including chips - to Chinese phone maker ZTE Corp roiled the firm, which uses mainly USA chips in its smartphones. It would allow Qualcomm, which flourished by supplying chips to the mobile phone boom, to broaden its product range into other industries.
The episode with ZTE could risk escalating the trade disputes between China and the U.S. Both have traded threats of placing billions of dollars in tariffs but technology had been one area of particular contention. Chinese government agencies are the largest or major shareholders. Beijing wants to boost its tech prowess and escape from its reliance on USA products.
"We will relentlessly fight back", he said, adding that China will take any necessary measures at any time in response to the United States move against ZTE.
The US technology supplies ban doesn't only encompass the smartphone market, as its effect is set to affect ZTE's main cash cow; specifically, its networking business. The subsequent ban on Huawei and ZTE is likely to dishearten a lot of them from betting big on the world's most profitable smartphone market. It would also handicap the mainland's ability to build the world's largest 5G network by the end of this decade. Subsequently, BIS requested a status report from ZTE regarding certain named individuals who ZTE reported had been subjected to harsh discipline as an indication of ZTE's commitment to compliance.
The Tempo Go began selling in the U.S. on 30 March and the entire stock was gobbled up in a day.