Seattle Times/New York Times: Chinese tech giant ZTE may be 1st victim in a new cold war
The Chinese firm ZTE said it had ceased “major operating activities” after the Trump administration banned the company last month from using components made in the United States.
Not Apple. Not Huawei. The first casualty of the high-tech cold war between the United States and China might be the biggest electronics maker you have never heard of.
The Chinese firm ZTE said Wednesday it had ceased “major operating activities” after the Trump administration banned the company last month from using components made in the United States. With manufacturing halted at ZTE’s plant in Shenzhen, factory workers have been getting called in for training sessions every other day or so — a snooze, they say. The rest of the time, they loaf around in the nearby company dorms. Trading in ZTE’s shares has been suspended for weeks.
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WNU Editor: It is definitely a victim of the growing U.S. - China fight over trade balances and deficits. And while I am sure that the Chinese are now going to pursue a crash program to develop their own chips so that they will not need to buy from U.S. suppliers .... the trade dispute will still continue. Another problem for Chinese tech manufacturers are the growing suspicions that Chinese products are being used to conduct surveillance. If they cannot get rid of this perception, it will only doom any future Chinese tech project.
More News On The Fall Of Chinese Tech ZTE
China's ZTE says main business operations cease due to U.S. ban -- Reuters
Chinese phonemaker ZTE near collapse after parts run out because of US sanctions -- Los Angeles Times
ZTE is now center stage in the US-China trade fight -- CNN
The US-China tech war has forced a Chinese smartphone maker to halt production -- Quartz
Trump's trade fight with China just claimed its first big victim -- Business Insider
