U.S. and Chinese authorities were able to agree to lift sanctions on ZTE

24 May 2018
In early April this year, U.S. authorities decided to restrict the sale of smartphones and network equipment ZTE in the country. In addition, the Chinese manufacturer was forbidden to buy the products of American technology companies for seven years. Such measures followed accusations that ZTE had supplied devices with American components to Iran and North Korea. This threatened China's second largest manufacturer of telecommunications equipment and cell phones with the most unpleasant consequences: at the beginning of May, the company even announced the suspension of its main operations due to U.S. sanctions. But it seems that the parties were able to come to an agreement and ZTE will stay afloat.The Wall Street Journal, citing some "knowledgeable" sources, reported that the U.S. and Chinese authorities were able to come to an agreement. After a series of negotiations, ZTE has agreed to meet the requirements, which means the removal of sanctions is imminent. Now, the company is facing significant changes in its business scheme and management team. In addition, the Chinese manufacturer must pay additional fines, after which the ban on commercial activities in the U.S. will be lifted. Recall that as a result of sanctions, ZTE lost the ability to use the Snapdragon processors of the American company Qualcomm. Until then, most of the company's smartphones were equipped with these chips. Despite the fact that ZTE also buys processors from Taiwan's MediaTek, it will not be possible to replace the Snapdragon, because of the relatively low power, not enough for flagship gadgets. Also, the Chinese manufacturer was forbidden to use the Android platform with Google services, but left the right to a "clean" version of the operating system, without the search giant's branded applications.