ZTE is no doubt one of the biggest Chinese phone brands in the United States. It’s currently the third most popular smartphone manufacturer in the country that it’s even now known as ZTE USA to easily distinguish it from the Chinese division. We don’t know the latest numbers yet but the company has been busy launching new models left and right.
There are two many ZTE phones available today including the updated 64GB Axon Pro, 4G-enabled ZTE Speed, ZTE Grand X from T-Mobile USA, unlocked ZTE ZMAX 2, and the ZTE Warp Elite for Boost Mobile. If you’re a fan of this brand, don’t get too excited whenever there’s an announcement of a new product because there’s some information that the US Commerce Department is about to set restrictions on exporting ZTE devices. This is according to a recent report by Reuters who noted that the company allegedly violated US export controls on Iran. Nothing has been confirmed yet but there are reports that ZTE was planning to re-export these US technology products to Iran.
There’s no total ban but only restrictions by requiring suppliers to get an export license before shipping any US-made parts or technologies to ZTE in China. This can pose a problem in acquisition as licenses must be applied for first. Sadly, license applications are only generally and likely to be denied as per a notice from the Commerce Department.
ZTE’s export trade will be greatly affected. Such restrictions will only make it difficult for ZTE to buy any material from US suppliers. Without these components, ZTE in China may not be able to produce the products lined up in time and as planned.
There may be hundreds of Chinese OEMs that are capable of producing hardware but most of them still rely on American technologies. US suppliers to China are a dime a dozen. If the restriction will finally take effect, expect the company to feel the burden of restriction which will most likely result to supply problems to and from ZTE.
VIA: Reuters
