Donald Trump finally wants to save ZTE

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The US president announced that he will eventually help the Chinese brand to return to the United States. An unexpected turnaround as the future looked bleak for ZTE.

ZTE saved by Donald Trump? In a tweet, the US president explains "working together" with his Chinese counterpart Xi Jinping to find "a way to get ZTE back quickly into business." A decision justified by the loss of "too many jobs in China," says Donald Trump.
The announcement is surprising as the commercial war against brands of Chinese smartphones seemed so far total. ZTE was first fined $ 1.2 billion for doing business with Iran and North Korea. Then the Commerce Department prevented him from obtaining from American companies, following the non-compliance with certain clauses, such as the sanctions against his responsible employees.

Huawei also threatened

Since then, ZTE and Huawei no longer have the right to sell their smartphones on US military bases, for fear of spying. An investigation was even opened against Huawei who could suffer the same sanctions as his compatriot.

Since ZTE is in the panade. On May 11, he announced that he had stopped producing his smartphones because of the lack of available components. One of its most important suppliers is indeed Qualcomm, with its SoC and other modem chips. What put its main competitors, Huawei, Oppo and Xiaomi on the ranks of a possible recovery of business.

The consequences of this ban on supply are thus felt to have a very concrete and brutal effect. 75,000 jobs are directly at risk in ZTE. It remains to be seen what Xi Jinping promised in exchange to Donald Trump.
After the passing of arms in recent months, it is hard to believe that the change of course of the American president is only due to a plea from his Chinese counterpart.

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