Trump forced Chinese Phone Company ZTE to shutdown

ShinkanPo

ShinkanPo

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Chinese got BTFO by Trump!


The Trump administration just forced smartphone maker ZTE to shut down
ZTE apparently couldn't continue without Qualcomm chips and Android software.​


One of the leading Chinese smartphone makers, ZTE, is shutting down global operations in the face of crippling sanctions levied by the US government. ZTE is China's number-two smartphone maker, and as recently as last year it was the number-four smartphone vendor in the US.

"The major operating activities of the Company have ceased," ZTE wrote (PDF) in a Wednesday announcement to stock market traders in Hong Kong.

ZTE's business became untenable after a US government order banned American companies from exporting technology to the Chinese smartphone maker. ZTE is heavily dependent on US-made components, especially Qualcomm chips and Google's Android software stack.

...

Last year, ZTE admitted to an elaborate multi-year scheme to sell US-made technology to Iran and North Korea in violation of US sanctions laws. ZTE paid $890 million in penalties and said it was in the process of disciplining dozens of senior company officials who had orchestrated a scheme to violate US sanctions laws.


But last month the Trump administration accused ZTE of continuing to lie to the US government even after last year's guilty plea. The company told the US government that the guilty executives had received letters of reprimand and had had their 2016 bonuses reduced. But the US now says that was a lie—many of the employees received full bonuses, and they didn't receive letters of reprimand until early 2018—after the US government challenged ZTE on the issue.


In the April 15 order activating the export ban against ZTE, US Commerce Department official Richard Majauskas wrote that ZTE had demonstrated a "pattern of deception, false statements, and repeated violations." A July 2017 letter to US officials was "brimming with false statements," he said.


Since 2011, Majauskas argued, ZTE had "employed multiple strategies in an attempt to conceal and obscure the true nature and extent of the company's role" in transactions that moved US-made technology to Iran and North Korea. "As a result of the conspiracy, ZTE was able to obtain hundreds of millions of dollars in contracts with and sales from Iranian entities to ship routers, microprocessors, and servers" that were subject to US export restrictions.


So on April 15, the US Commerce Department invoked the nuclear option, banning US companies from doing business with ZTE.


Unfortunately for ZTE, US-made hardware and software are a huge part of ZTE's products. According to Reuters, at least 25 percent of the components in ZTE's phones came from US companies. ZTE makes heavy use of Qualcomm chips for its smartphones and other products.


Even worse, the export ban included Google's suite of standard Android apps. While the Android operating system itself is open source, Google has maintained control over apps like Google Maps and, most importantly, the Play Store. Outside of China, it's difficult to sell an Android phone without access to Google's app store.
Click to expand...

Read more.
https://arstechnica.com/tech-policy...ust-forced-smartphone-maker-zte-to-shut-down/

Hmmn,

This might be one of the reasons N.Korea under the direction of China wants to make a deal with Trump, along with the possible trade war, a big Chinese I.T company shutting down is definitely bad press for Mr.Xi Jin Ping.

I bet the Chinese will appeal to the US to lift those sanctions once the Korean relations have normalized.
But I am not sure if Trump will relent as there is also National security ramifications for allowing these Chinese companies access to US Tech.

And ZTE is an ultra corrupt company bribing other corrupt politicians all over the world so they can set up their Chinese based networks that will make it for China to create their own international surveillance network.

So much for Xi Jin Pings noise making the past few months about China gonna do big stuff. But for sure they are now on a race to build their own semi conductor industry that can compete against western technologies.

They have already been building super computers so it might not be long before they start making commercial versions of their micro processors

But so much for that overstated "China gonna out-tech the west" I have been hearing a lot these days.
 
Trump is so racist. He wouldn't have even cared if the company was owned by white Americans.
 
I think Trump will break Mr.Xi Jin Ping very bad.

Trump did not get to be invited in the WWE to push Vince and get elected president just to let Mr.Ping make noise about China going big time and creating a military that will win wars.

If anything it seems Trump is the type that gets challenge in this situation.

Specially after reports Chinese Missile Installation in the South China Sea I am sure he is watching all these developments and getting challenged.
 
Ah, ZTE. Play stupid game, win bankruptcy.

May be they can reduce their operation and compete in the low-end market in Asia with Chinese CPU/wireless chipset/glass screen.
 
Arkain2K said:
Ah, ZTE. Play stupid game, win bankruptcy.

May be they can reduce their operation and compete in the low-end market in Asia with Chinese CPU/wireless chipset/glass screen.
Click to expand...

This ZTE commpany attempted to infiltrate the Philippine Market during the time of Pres.Gloria Macapagal.

It was called the ZTE scam, it is an attempt to consolidate the internet broadband infrastructure under ZTE hence much more easy control by the Chinese.

Oh and guess what Gloria is no longer in prison today!
https://en.wikipedia.org/wiki/NBN–ZTE_deal_corruption_scandal
 
One love. RIP

giphy.gif
 
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