Chinese Tech Giant on Brink of Collapse in New U.S. Cold War (archive)
Not Apple. Not Huawei. The first casualty of the high-tech cold war between the United States and China might be the biggest electronics maker you've never heard of.
The Chinese firm ZTE said on Wednesday [PDF] it had ceased "major operating activities" after the Trump administration banned the company last month from using components made in the United States. With manufacturing halted at the ZTE plant in Shenzhen, factory workers have been getting called in for training sessions every other day or so — a snooze, they say. The rest of the time, they loaf around in nearby dorms.
Trading in the company's shares has been suspended for weeks. Staff members have been instructed, in new guidelines reviewed by The New York Times, to reassure anxious clients, while being sure to avoid discussing with them the American technology from which the firm is cut off for the next seven years.
One of China's most internationally successful technology suppliers, with about $17 billion in annual revenue, ZTE is facing a death sentence. The Commerce Department has blocked its access to American-made components until 2025, saying the company failed to punish employees who violated trade controls against Iran and North Korea.
Update: President Trump has vowed to get ZTE "back into business, fast" (archive):
President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done! — Donald J. Trump (@realDonaldTrump) May 13, 2018
Also at Fortune, WSJ, USAToday and CNN.
Previously: U.S. Intelligence Agency Heads Warn Against Using Huawei and ZTE Products
Huawei CEO Still Committed to the U.S. Market
Rural Wireless Association Opposes U.S. Government Ban on Huawei and ZTE Equipment
ZTE Responds to U.S. Ban on Sales by American Companies to ZTE
(Score: 3, Interesting) by The Mighty Buzzard on Sunday May 13 2018, @11:54PM
Diplomacy is going on. Nothing all that interesting unless you happen to be directly affected or like to watch this sort of interaction. Clinton would have done fine at this point, Bush II not so much, Obama would have been just as bad, and Trump appears to be doing fairly well. The Chinese are simply too good at diplomacy to not give all the tools you have to a skilled negotiator who also happens to be a ruthless bastard when dealing with them.
My rights don't end where your fear begins.