back to article Zero Tech Emitted: ZTE halts assembly lines after US govt sanctions cripple mobile maker

US sanctions against Chinese mobe maker ZTE have forced the company to go into zombie mode as it can’t get the electronic components it needs from American suppliers. In a filing on the Hong Kong stock exchange on Wednesday, the mobile maker, ranked sixth or seventh in the world by volume depending on whose figures you trust, …

  1. Yet Another Anonymous coward Silver badge

    A cunning plan

    This will force the Chinese to develop better home grown kit to replace the stuff it can't buy, thus leading to enhanced Chinese technologies, more choice, cheaper prices for everyone (outside the USA) and a rise in Chinese GDP - thus proving that Trump really is a global benefactor

    1. Anonymous Coward
      Anonymous Coward

      Re: A cunning plan

      The reason they were using US sourced components was mostly because they were trying to break into US markets, and didn't want to run afoul of US patents that would allow competitors to block imports. It isn't because they didn't have Chinese alternatives for SoCs to put in their phones and routers - there are plenty of companies using pretty much 100% Chinese components that produce phones and other products that are sold only in China.

      Now that they have to shelve the idea of competing in the US, and probably EU, they will be free to use Chinese components that probably violate US/EU patents since they will only be sold in China or in countries that don't care about restrictions (i.e. Africa, Middle East, Indonesia, etc.)

      At best this will cause China to push even harder to become technologically self-sufficient, at worst they will ban import of many US products - partially as retaliation, partially to help give their home grown products a leg up. Yay for short term thinking by Trump - but hardly surprising for a guy who can't even think far enough ahead to know how a sentence he begins will end.

      1. Jason Bloomberg Silver badge

        Re: A cunning plan

        Yay for short term thinking by Trump - but hardly surprising for a guy who can't even think far enough ahead to know how a sentence he begins will end.

        Doesn't every sentence he start end with an exclamation mark?

        So sad!

        1. x 7

          Re: A cunning plan

          No, you got that wrong.

          More like every sentence he manages to complete starts with an exclamation. Usually an untrue exclamation.

          1. Anonymous Coward
            Anonymous Coward

            Re: A cunning plan

            Fake fake news!!!!!!!

      2. Cuddles Silver badge

        Re: A cunning plan

        "Yay for short term thinking by Trump"

        It's nothing to do with Trump, and nothing to do with the recent trade shenanigans, although doubtless will be dragged in by both sides. ZTE was banned back in early 2016, well before anyone thought Trump had a hope of being president, for breaching sanctions on Iran and North Korea. The ban was lifted about a year later after paying a hefty fine, and it was reinstated again recently when it turned out that they'd been continuing to breach the same sanctions all along while repeatedly lying to everyone involved in investigating them the first time around. Nothing to do with Trump, nothing to do with trade tariffs, and not really anything to do with China at all other than that happening to be where ZTE are based.

  2. Yet Another Anonymous coward Silver badge

    How are Intel doing in phones?

    Since Trump started a trade war over a tiny amount of Steel imports from a country that now owns the CPU in every mobile device

    I look forward to buying my V8 diesel powered Itanium phone

    1. Charlie Clark Silver badge

      Re: How are Intel doing in phones?

      Intel lost the phone war (sic) years ago. It's got some sales for modems through business it bought years ago.

      1. Yet Another Anonymous coward Silver badge

        Re: How are Intel doing in phones?

        So if somebody banned the export of ARM technology to the USA ......

  3. Kevin McMurtrie Silver badge
    Meh

    Trying hard to care

    The number of updates that my Axon 7 will receive remains unchanged, as does the number of ZTE devices I was planning to purchase in the future. You can still buy a Moto if you want a buggy flagship phone that becomes unsupported before the warranty runs out.

    1. Yet Another Anonymous coward Silver badge

      Re: Trying hard to care

      Moto is now owned by filthy foreign commie Lenovo - so no true American would buy them either.

    2. Mark Lawson

      Re: Trying hard to care

      ...apart from the apparent cancellation of the Oreo update you would otherwise have seen?

  4. Nick Kew

    But didn't you say ...

    So how does this fit with the customary narrative that the Chinese just rip off American tech willy-nilly?

    How come ZTE aren't just producing their own clones of components whose supply has been cut off, or at least sourcing them from some Chinese tech-clone manufacturer?

    1. Dan 55 Silver badge

      Re: But didn't you say ...

      I'd have thought MediaTek or Samsung (Exynos) could help them out, unless the ban also extends to other countries/corporations doing business with ZTE as well, like Cuba.

      More to the point, can Google still license Play Store and Services to ZTE? If the ban doesn't cover that then the Trump administration doesn't really get what software does.

      1. Anonymous Coward
        Anonymous Coward

        Re: But didn't you say ...

        "the ban also extends to other countries/corporations doing business with ZTE as well, like Cuba."

        That would be the Cuba where the PC's all ran Windows and the drinks included Coca-Cola.

        When I asked how they got them, they just casually said via Canada and Venezuela

    2. Charlie Clark Silver badge

      Re: But didn't you say ...

      I think this a mix of supply chain realities, product lines and PR.

      It will be difficult to source some components that come either from US manufacturers or from suppliers unwilling to piss off the Trump regime. ZTE doesn't just make phones, and in some markets there are not a lot of suppliers. This may mean dropping some lines to focus on others. ZTE is very close to the army so bankruptcy isn't likely. But there is no doubt political capital in China to be gained from portraying ZTE as the victim of fairly vicious sanctions. As with the withdrawal from the Iran deal, the message to the rest of the world that the US is sending is that it can't be trusted to keep its word.

      While Trump will be able to spin this domestically as a demonstration of US power, it's almost certainly at least one nail in the coffin of US hegemony, particular in the Far East.

    3. Anonymous Coward
      Anonymous Coward

      Re: But didn't you say ...

      @Nick Kew; See Doug S's comment for the apparent answer. (It was posted after you asked this, but in response to an earlier comment, so appears further up).

  5. Anonymous Coward
    Anonymous Coward

    Who am I going to buy my landfill phones from now?

    .My current phone is a ZTE Blade A110, cost me £30 on PAYG and it's fine for everything I need, (GPS, basic games texts, and of course, phone calls.)

    I can guarantee that with one less manufacturer in play, landifll phone prices are going to rise. Er, thanks america...

    1. Anonymous Coward
      Anonymous Coward

      Re: Who am I going to buy my landfill phones from now?

      > Er, thanks america

      Trump is turning people against America one person at a time and we really should be thanking him for that.

      He has gone so far it is almost impossible not to turn against America. He has been so determined in achieving that it looks like it is his plan.

  6. DownUndaRob

    cant see past his own boundaries.

    Attempts to rescue car industry, damages two tech companies in the process (Qualcomm & Acacia)

  7. This post has been deleted by its author

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