Just over a week ago, it was announced that ZTE had reached an agreement to return to the American market. The company had to pay a million-dollar fine to do so, in addition to laying off its entire management. But thanks to this, they could use American components again and return to operations. The problems aren’t over, though.
ZTE could be repossessed in the United States
In the United States, they do not seem to be entirely happy with the agreement and are looking for ways to bring the embargo back. So the situation could go back to bending for the manufacturer if this goes ahead.
The problems continue for ZTE
Since in America, the Senate has passed a new law, which looks like it will pass. For this reason, the block will be returned to the company. So ZTE would not be able to use U.S.-orientated components on its devices, which would mean that its operations would once again be completely cancelled. And the risk is increasing.
This is something that has been noticed on the stock market, because the manufacturer’s shares have completely collapsed, falling by 27% at times. A problem that highlights once again ZTE’s current bad timing.
At the moment it is not known when this law will be passed in the US Senate, although it should not take too long. The consequences for the company can be many, including its own end. So we hope to know more soon.
Source
Gizmochina