Market Alert: ZTE Future Uncertain
The latest casualty in what some consider the emerging trade showdown between the USA and China has come in the form of ZTE, who has announced they have ceased ‘major operations’. On April 16th, 2018, the U.S. Department of Commerce banned American companies from exporting parts to ZTE. Given that 25%+ of the components that make up ZTE equipment comes from U.S. manufacturers, ZTE was forced to shut down its production lines. While most people are aware that ZTE manufactures mobile handsets, most were not fully aware that the bulk of their revenue comes from telecom exchange, optical transmission, and other tier one communications ...
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