Stocks of Chinese telecoms giant ZTE climbed 17% after it was confirmed that the US supplier ban imposed on it had been lifted. However, analysts warned that the company’s business in the country is still largely uncertain due to a number of major challenges. Nikhil Batra, senior research manager at consultancy IDC, says that the company will have to rethink its overall design strategy as it will have to find substitutes for suppliers such as Avnet, Qualcomm, Broadcom etc to reduce its reliance. Aside from the $1 billion penalty ZTE had to pay the US Treasury, Batra says the company […]

ZTE, China’s second largest telecommunications equipment manufacturer, agreed to pay a hefty fine of $1 billion in order to resume its operations in the US. The company’s chairman also reportedly issued an apology to customers and staff after finalizing its agreement with the US to lift the ban which had been in place since April. However, experts say that it would take ZTE at least a month to resume shipping phones, on top of job cuts, wage reductions, and potential customer loss as the company reshuffles it senior management. Source: Reuters

Sources have said this week that China’s second largest telecommunications manufacturer had signed an agreement in principle so that it can resume doing business in the US. However, A Commerce Department spokesman said last Tuesday that “no definitive agreement has been signed by both parties.” A number of lawmakers from both parties had expressed resistance to ZTE’s resuscitation and accused the Trump administration of caving into pressure from Beijing. U.S. Senate Democratic leader Chuck Schumer even said that the president, who roared like a lion is governing like a lamb when it comes to China if he lets ZTE off […]