RIP ZTE: new sanctions have caused the company to cease global operations

If you’re a big ZTE fan, you may want to sit down. We have some bad news.

Those last round of sanctions that were passed to stop ZTE from dealing with American companies after ZTE tried to skirt around sanctions on Iran and North Korea are apparently going to be enough to completely cripple ZTE’s smartphone business, and the second largest smartphone maker in China has announced they’re stopping all global operations from here on out.

In a nutshell, ZTE worked to indirectly sell American components to both Iran and North Korea, despite the US prohibiting exactly that. ZTE paid a massive fine of almost $1 billion and were supposedly going to discipline some upper officials, but it turns out they didn’t really do much disciplining. That obviously irked the US, so they dropped a full ban on selling equipment to ZTE in any capacity. There was also some speculation that would include Android’s Google Play apps, too, since Google is an American company.

So without access to much networking equipment or a global operating system, what’s ZTE’s plan? Well, there is no plan. ZTE is done making smartphones.

To be fair, they’re appealing the ban with the US government, however unlikely that may be. But things are looking pretty grim, so don’t expect to make any ZTE purchases anytime soon.

source: Ars Technica

About the Author: Jared Peters

Born in southern Alabama, Jared spends his working time selling phones and his spare time writing about them. The Android enthusiasm started with the original Motorola Droid, but the tech enthusiasm currently covers just about everything. He likes PC gaming, Lenovo's Moto Z line, and a good productivity app.

  • pda96

    I Huawei in the same boat? Are they banned from selling phones in the US?