ZTE suspends its activities and pondering the sale of mobile units

Because of imposed sanctions, the US company does not seem to   will be able to produce smartphones without American components, so another   last week   production stopped.

ZTE suspends its activities and pondering the sale of mobile units

Forecasts for   the collapse of ZTE after the imposition of US sanctions seems to have come true. As it turned out, more   Last week, the Chinese manufacturer stopped major business operations and   While there are no positive prospects for   its position is not   sees.

What happened

ZTE stopped the production of smartphones, and   also closed its official online store and   blocked the page on   trading platform Taobao, owned by Alibaba Group. Employees report that they continue to work, but   at   the cut-off mode.

In addition, after the introduction of sanctions, ZTE shares trade was frozen.

Have   The company has a lot of loans, and   in the absence of any activity, to pay them off   will be impossible. Therefore, in   The media is saying that ZTE was thinking about selling the mobile unit. Negotiations on   The deal has already been allegedly   Huawei, OPPO and   Xiaomi.

Why did this happen

ZTE went to   bottom of the   US sanctions. Recall, due to the conduct of prohibited trade with   Iran and   DPRK the company got into   the disgrace of the US authorities. American manufacturers at   7 years have been banned from selling her   accessories and   software, and   this is 25 - 30% of the product sets.

AT   First of all, these are Google services and   mobile processors from   Qualcomm. AND   although MediaTek and   allowed to supply the Chinese manufacturer its chipsets, the situation is, apparently , not   saved.

Source: Reuters