ZTE is about to have a much harder time doing business in the USA, as the government is apparently planning to restrict local companies from selling hardware components and software to the Chinese telecoms giant.The issue is reportedly to do with plans made by ZTE to re-export US technology products from its suppliers to Iran, which the US government prohibits. Allegedly, the US Commerce Department has seen ZTE company documents which revealed that company planned to use shell businesses to resell the supplies.As a result, the government will be restricting US suppliers from selling any hardware or software components to ZTE. The ruling is expected to go into force on Tuesday. This will likely have major knock on effects for ZTE’s business in the US and around the world. The company is a major global supplier of telecom networking equipment and is the only Chinese smartphone brand with a notable presence in the US. At the last check, ZTE held around 7 percent of the US smartphone market, making it the fourth largest manufacturer in the country.For the company’s smartphone business, this ruling would lock ZTE out of using components such as the processors designed by US giants Qualcomm and Intel. This is likely to cause major stock issues for some of the company’s higher-end products, and will likely result in ZTE purchasing alternative chips from rival processor developers, such as MediaTek. 
ZTE talks past, present and … ZTE Avid Plus hands-on! ZTE Grand X3 First Look ZTE Axon Mini Premium Editio… Fortunately for ZTE, the company has not been banned from selling any products in the US. However, these restrictions will almost certainly have a major impact on the company’s growth plans, as many Chinese companies are still heavily reliant on US tech imports to build other products. ZTE shares were suspended from trading in Hong Kong earlier today upon announcement of the news.
US Gov to impose component restrictions on ZTE
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