| Mr. Crowd News |  Market
China's ZTE may lose Android license because of US ban
By Mr. Crowd 19 Apr 20188:32
U.S. Department of Commerce has banned American firms U.S. companies from exporting to China's ZTE Corp for seven years. The market is worried that ZTE Corp may not be able to use Google's Android operating system on its mobile devices.
The incident may have a serious impact on ZTE. ZTE has 25-30% of its vital electronics imported from U.S. suppliers like Qualcomm, Intel, Oracle, Corning. The sanctions will cause ZTE's communications equipment and handset products to face the dilemma of not finding alternative products, at least in the short term.
According to Reuters, ZTE and the Alphabet, the parent company of Google, have been discussing the impact of the ban. However, the two companies were still uncertain about how the ban will affect the use of Android by ZTE.
ZTE produced 46.4 million Android smart phones last year, with a market share of about 3%.
“ZTE made false statements to the U.S. Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation.” said Secretary of Commerce Ross.
In March 2017, ZTE agreed to a combined civil and criminal penalty and forfeiture of $1.19 billion after illegally shipping telecommunications equipment to Iran and North Korea.
In addition, according to the Wall Street Journal, the Office of the U.S. Trade Representative is studying how to retaliate against the Chinese government's restrictions on U.S. cloud computing providers. The U.S. Government may limit Alibaba’s business in the United States. At present, the Chinese government requires that Amazon and Microsoft's cloud computing to operate jointly with Chinese companies in China and must transfer their technology to Chinese partners. However, Alibaba can operate cloud computing services in the United States without any restrictions.
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