Choked by US ban, ZTE halts smartphone sales in China

[Hamartia Antidote]

https://asia.nikkei.com/Business/Companies/Choked-by-US-ban-ZTE-halts-smartphone-sales-in-China

Smartphones are no longer displayed at a directly run ZTE shop inside the company's headquarters in Shenzhen

SHENZHEN -- ZTE was likely forced to suspend Chinese sales of smartphones by Tuesday as supplies of key components remained cut off by Washington's ban on American technology exports to the company.

Sales have been suspended online and in a directly run store at its Shenzhen headquarters. Alibaba Group Holding's Tmall online marketplace had also stopped selling ZTE phones by Tuesday.

Wireless carriers still offer ZTE smartphones at stores but are nearly out of stock and are expected to halt sales when inventories dry up.


"The U.S. restrictions are an unfair decision," a ZTE employee in his 20s told Nikkei outside company headquarters on Tuesday. "Our factories have stopped running, and our employees can't make products, so they can only pass the time by doing technical training."

ZTE may also have to stop smartphone sales in the U.S. once inventories run out.

Sales of ZTE smartphones have largely ground to a halt in China since a U.S. ban on component exports.

The turmoil drove management on Tuesday to delay the annual shareholders meeting from Friday to late June.

ZTE was hit with the seven-year ban on American technology exports April 16 for illegally shipping equipment to Iran and North Korea. Since it does significant business with U.S. and Japanese parts suppliers, prolonged stoppages to production and sales will also worsen the impact on the global smartphone supply chain.

Partly state-owned ZTE was the ninth-largest smartphone vendor in China last year and fourth in the U.S. Ranked ninth in the world, the company is one of the first major victims of intensifying Sino-American trade frictions.

 

[TruthTheOnlyDefense]

https://asia.nikkei.com/Business/Companies/Choked-by-US-ban-ZTE-halts-smartphone-sales-in-China

Smartphones are no longer displayed at a directly run ZTE shop inside the company's headquarters in Shenzhen

SHENZHEN -- ZTE was likely forced to suspend Chinese sales of smartphones by Tuesday as supplies of key components remained cut off by Washington's ban on American technology exports to the company.

Sales have been suspended online and in a directly run store at its Shenzhen headquarters. Alibaba Group Holding's Tmall online marketplace had also stopped selling ZTE phones by Tuesday.

Wireless carriers still offer ZTE smartphones at stores but are nearly out of stock and are expected to halt sales when inventories dry up.


"The U.S. restrictions are an unfair decision," a ZTE employee in his 20s told Nikkei outside company headquarters on Tuesday. "Our factories have stopped running, and our employees can't make products, so they can only pass the time by doing technical training."

ZTE may also have to stop smartphone sales in the U.S. once inventories run out.

Sales of ZTE smartphones have largely ground to a halt in China since a U.S. ban on component exports.

The turmoil drove management on Tuesday to delay the annual shareholders meeting from Friday to late June.

ZTE was hit with the seven-year ban on American technology exports April 16 for illegally shipping equipment to Iran and North Korea. Since it does significant business with U.S. and Japanese parts suppliers, prolonged stoppages to production and sales will also worsen the impact on the global smartphone supply chain.

Partly state-owned ZTE was the ninth-largest smartphone vendor in China last year and fourth in the U.S. Ranked ninth in the world, the company is one of the first major victims of intensifying Sino-American trade frictions.

And we have Chinese and their slaves telling us the US is going to collapse, they have been saying that for 30 years LOL.

 

[The Accountant]

And we have Chinese and their slaves telling us the US is going to collapse, they have been saying that for 30 years LOL.

It has implications both ways ... Furthermore it erodes market confidence and will provide opportinity to other suppliers

 

[Huan]

ZTE leaders are too darn naive to rely on US components for this long after Trump is elected. They should have pursue contingencies starting January 2017. Not wait until now to scramble to adapt. Soooo sooo naive are the ZTE executives.

 

[Dungeness]

And we have Chinese and their slaves telling us the US is going to collapse, they have been saying that for 30 years LOL.

Really？ Any links to back you up? I thought it was the other way around.

 

[Hamartia Antidote]

ZTE leaders are too darn naive to rely on US components for this long after Trump is elected. They should have pursue contingencies starting January 2017. Not wait until now to scramble to adapt. Soooo sooo naive are the ZTE executives.

Not sure why you are pointing the finger at just ZTE. Many Chinese phone companies use US parts. ZTE is only in trouble because they broke signed agreements on exporting to North Korea and Iran. The other Chinese companies either have not broken their agreements or haven't been caught.

For instance look at these companies:

Qualcomm’s $2 billion 5G deal will power 2019 Lenovo, Oppo, Vivo, and Xiaomi phones
https://venturebeat.com/2018/01/25/...ower-2019-lenovo-oppo-vivo-and-xiaomi-phones/

 

[jhungary]

ZTE leaders are too darn naive to rely on US components for this long after Trump is elected. They should have pursue contingencies starting January 2017. Not wait until now to scramble to adapt. Soooo sooo naive are the ZTE executives.

All Chinese phone maker uses US technology and US parts in their phone. Not just ZTE. Most phone sold to Outside China have to use US standard of equipment and phone sold in China have to have some degree of US licensed technology in it.

For example. Phone sold in US/UK/EU selfdom contain Chinese made CPU, most are using Qualcomm. Most Chinese phone sold outside China uses google android in its original form. Phones in China have the 802.11 g/b/h band wifi would have to license their frequency and equipment form WIFI alliance. Item such as Blue tooth are also licensed by US company. Mali series of Video chip were licensed from ARM holding.

If we have a blanket ban from US to Chinese phone maker tomorrow. All Chinese phone would not have come with the following feature.

-Android or Android based OS (such as EMUI) because of Google Android Licenses
-Wifi because Wifi technology is patented in the US and is licensed by Wifi Alliance
-Bluetooth, because Bluetooth is trademarked in the US.
-Memory Expansion (MSD, Flash Card) Micro SD card and other Solid State data storage is proprietor by JEDEC which is based in Austin TX.
-Video Chip, only one mobile video chip maker in the world, by ARM holding
-Processor (Non Chinese market) - Qualcomm is a US company.

Basically, if US ban Chinese phone maker tomorrow. All Chinese phone would just have a CPU, RAM, Display Screen, you have to use LAN cable to connect to Internet. You have to use cable to connect earphone/microphone

 

[Hack-Hook]

All Chinese phone maker uses US technology and US parts in their phone. Not just ZTE. Most phone sold to Outside China have to use US standard of equipment and phone sold in China have to have some degree of US licensed technology in it.

For example. Phone sold in US/UK/EU selfdom contain Chinese made CPU, most are using Qualcomm. Most Chinese phone sold outside China uses google android in its original form. Phones in China have the 802.11 g/b/h band wifi would have to license their frequency and equipment form WIFI alliance. Item such as Blue tooth are also licensed by US company. Mali series of Video chip were licensed from ARM holding.

If we have a blanket ban from US to Chinese phone maker tomorrow. All Chinese phone would not have come with the following feature.

-Android or Android based OS (such as EMUI) because of Google Android Licenses
-Wifi because Wifi technology is patented in the US and is licensed by Wifi Alliance
-Bluetooth, because Bluetooth is trademarked in the US.
-Memory Expansion (MSD, Flash Card) Micro SD card and other Solid State data storage is proprietor by JEDEC which is based in Austin TX.
-Video Chip, only one mobile video chip maker in the world, by ARM holding
-Processor (Non Chinese market) - Qualcomm is a US company.

Basically, if US ban Chinese phone maker tomorrow. All Chinese phone would just have a CPU, RAM, Display Screen, you have to use LAN cable to connect to Internet. You have to use cable to connect earphone/microphone

wrong on some level
JEDEC is only define a series of standards they dont sell anything its just more than 300 company who work on memory and storage define some standards so all their products work with each other.
about Bluetooth and WIFI well ,usually it come with SOC

Video Chips, well Arm license its IP to others and they design their chips and GPU based on that or based on others . when they gave license for designing a chip they can;t take it back and the company behind it is British not US.
their GPU is called Mali, there are other options like Imagination with its PowerVR gpu (again a British company) there is Qualcom with its Adreno ,Apple with Its Bionic and Intel with HD and nVIDIA with Geforce line of GPU and Vivante with GC series of GPU (All American)
the most important part here is SOC ,Except intel which use its own IP they get a license from ARM and build their own SOCs or get one from Qualcomm (American) ,MediaTech from Taiwan, Allwinner and Rockchip from China

and Google only can stop them from preinstalling their software because of licensing they cant stop them from using Android.

Oh, I forgot the case with WIFI allianceis the same with JEDEC

Wi-Fi Alliance is a non-profit organization that promotes Wi-Fi technology and certifies Wi-Fi products if they conform to certain standards of interoperability. Not every IEEE 802.11-compliant device is submitted for certification to the Wi-Fi Alliance, sometimes because of costs associated with the certification process. The lack of the Wi-Fi logo does not necessarily imply a device is incompatible with Wi-Fi devices.

they just can stop them from puting WIFI logo on the phone but they cant stop them from putting a WIFI chip inside it

 

[jhungary]

wrong on some level
JEDEC is only define a series of standards they dont sell anything its just more than 300 company who work on memory and storage define some standards so all their products work with each other.
about Bluetooth and WIFI well ,usually it come with SOC

The standard is what I am talking about, these 300 company (you found on Wikipedia, right?) pay loyalty to use the standard system.

For example. SD card uses system defined by SD Card Association (SDA), every major brand that produce SD card (including Micro SD card) have to adhere to this standard if you want your card to be called and compatible to SD format, these standard include transfer speed, classes, data format and card size. And each of these company produce these card would have to pay some degree of royalty to SDA so you can have this logo printed on your card.

If you are not allow to deal with SDA because of licensing issue, then you cannot use the format adhere to the standard (Which is a trademark as seen on the logo above.) Does that mean you cannot have external storage? No, you can still have external storage but that will not be a SD system.

JEDEC is the governing body to all solid state data control these type of licenses and standard, they don't sell card per se, or manufacture them, but people who want to do so have to buy license from them so they can use their format

Video Chips, well Arm license its IP to others and they design their chips and GPU based on that or based on others . when they gave license for designing a chip they can;t take it back and the company behind it is British not US
.
their GPU is called Mali, there are other options like Imagination with its PowerVR gpu (again a British company) there is Qualcom with its Adreno ,Apple with Its Bionic and Intel with HD and nVIDIA with Geforce line of GPU and Vivante with GC series of GPU (All American)

I am aware ARM and PowerVR are both British Company, but you know why ZTE is going down like this today right?

In a hypothetical situation I mentioned if China this time is on the ban list. Would ARM and PowerVR sell stuff to Chinese Telecom? Which is bar from trading to China (as in the case of NK and Iran today), both ARM and PowerVR being British Company does not mean they do not process/trade US made technology. For example, ARM uses Apache Licensed mBed TSL/SSL program and database, which is registered to American Apache Software Foundation. While PowerVR uses MIPS Architecture which is developed by MIPS technology (an American company), bought by Imagination Group..

If ARM and PowerVR sell their license to China in this case, will most likely suffer the same fate as ZTE to begin with.

What I said they are non-replaceable is there are no Chinese own company deriving the same tech available. Like CPU and RAM.

the most important part here is SOC ,Except intel which use its own IP they get a license from ARM and build their own SOCs or get one from Qualcomm (American) ,MediaTech from Taiwan, Allwinner and Rockchip from China

and Google only can stop them from preinstalling their software because of licensing they cant stop them from using Android.

Oh, I forgot the case with WIFI allianceis the same with JEDEC


they just can stop them from puting WIFI logo on the phone but they cant stop them from putting a WIFI chip inside it

You cannot be serious...……

You do know WIFI and Bluetooth is not just about the logo, right? You can develop a brand new method for Wireless Data transfer, and that system would not be called WiFi and most importantly, they could not be compatible to current WiFi infrastructure. Because the WiFi system is specifically defined and to work to a certain spectrum which is IEEE 802.11b/g/n (2.4GHz, 3.6GHz, 4.9GHz, 5GHz, 5.9GHz.) Which is what your router is set to today (Assuming your router is wifi-compatible), of course you can build another network (disregard the time you need to develop such network) using non-WiFi compatible system would mean your phone would not be able to connect to your router, because your phone would have to use a different bandwidth which mean you either need a new router or new phone to go online.

Google can stop the license to allow the Chinese company to use their android core code, which mean all system developed on android would not be license to Chinese company. And while you are right, that does not mean they can stop people from using android, but let's take ZTE as an example, US banned ZTE trade for 7 year, how many update would android have in the next 7 years? If we are using the current structure, 7 years ago, we are using Android 4.0, today we are using Android 8.1

There will not be a SoC if those IP right to use American technology were not applies to China, whatever making these SoC (Qualcomm, TSMC, MediaTek) would have to either taken these IP right item out or stop selling to China altogether. Selling US patented Technology on SoC by ZTE to Iran and North Korea is the exact clause why ZTE is being banned form trading with the US...

 

[fitpOsitive]

That's the reason, we started our work on JF-17. Every project, every purchase in which USA is involved, is not certain.

 

[Hamartia Antidote]

That's the reason, we started our work on JF-17. Every project, every purchase in which USA is involved, is not certain.

I’m sure a requirement was you can’t sell it to Taiwan.

 

[cloud4000]

I will tell you who's really happy about ZTE predicament: its competitors.

 

[jetray]

All Chinese phone maker uses US technology and US parts in their phone. Not just ZTE. Most phone sold to Outside China have to use US standard of equipment and phone sold in China have to have some degree of US licensed technology in it.

For example. Phone sold in US/UK/EU selfdom contain Chinese made CPU, most are using Qualcomm. Most Chinese phone sold outside China uses google android in its original form. Phones in China have the 802.11 g/b/h band wifi would have to license their frequency and equipment form WIFI alliance. Item such as Blue tooth are also licensed by US company. Mali series of Video chip were licensed from ARM holding.

If we have a blanket ban from US to Chinese phone maker tomorrow. All Chinese phone would not have come with the following feature.

-Android or Android based OS (such as EMUI) because of Google Android Licenses
-Wifi because Wifi technology is patented in the US and is licensed by Wifi Alliance
-Bluetooth, because Bluetooth is trademarked in the US.
-Memory Expansion (MSD, Flash Card) Micro SD card and other Solid State data storage is proprietor by JEDEC which is based in Austin TX.
-Video Chip, only one mobile video chip maker in the world, by ARM holding
-Processor (Non Chinese market) - Qualcomm is a US company.

Basically, if US ban Chinese phone maker tomorrow. All Chinese phone would just have a CPU, RAM, Display Screen, you have to use LAN cable to connect to Internet. You have to use cable to connect earphone/microphone

chinese companies dont care to give a hoot about patent or copyright laws unless they are branded. But they certainly are in a spot wrt to chips or processors.

 

[master_13]

https://asia.nikkei.com/Business/Companies/Choked-by-US-ban-ZTE-halts-smartphone-sales-in-China

Smartphones are no longer displayed at a directly run ZTE shop inside the company's headquarters in Shenzhen

SHENZHEN -- ZTE was likely forced to suspend Chinese sales of smartphones by Tuesday as supplies of key components remained cut off by Washington's ban on American technology exports to the company.

Sales have been suspended online and in a directly run store at its Shenzhen headquarters. Alibaba Group Holding's Tmall online marketplace had also stopped selling ZTE phones by Tuesday.

Wireless carriers still offer ZTE smartphones at stores but are nearly out of stock and are expected to halt sales when inventories dry up.


"The U.S. restrictions are an unfair decision," a ZTE employee in his 20s told Nikkei outside company headquarters on Tuesday. "Our factories have stopped running, and our employees can't make products, so they can only pass the time by doing technical training."

ZTE may also have to stop smartphone sales in the U.S. once inventories run out.

Sales of ZTE smartphones have largely ground to a halt in China since a U.S. ban on component exports.

The turmoil drove management on Tuesday to delay the annual shareholders meeting from Friday to late June.

ZTE was hit with the seven-year ban on American technology exports April 16 for illegally shipping equipment to Iran and North Korea. Since it does significant business with U.S. and Japanese parts suppliers, prolonged stoppages to production and sales will also worsen the impact on the global smartphone supply chain.

Partly state-owned ZTE was the ninth-largest smartphone vendor in China last year and fourth in the U.S. Ranked ninth in the world, the company is one of the first major victims of intensifying Sino-American trade frictions.

ok, ZTE got banned, but other chinese mobile phone companies are taking over ZTE's place, I don't see what the big deal is.

 

[Kiss_of_the_Dragon]

And we have Chinese and their slaves telling us the US is going to collapse, they have been saying that for 30 years LOL.

US is indeed on the verge of collapse after so many years of wars budging in Middle east and massively borrow moneys from China and Japan. US's military embargo 20 years ago couldn't stop China from rising and can't prevent China to design and build stealth fighter, strategic transport...and the hopeless US now is trying to use their available option such economy as weapon against China. US certainly doesn't have the last laugh, ban selling Semi-conductor chip to ZTE is just naïve and primitive emotional gesture, it's just a short term win long term lost for US, China could have hit US where it most hurt such ban Apple of using Chinese chain supply to make IPhone as retaliation but instead of taking a reckless counter-measure, China rather wants to take time on re-adjust, re-evaluate and re-calibrate the aiming on US trade war...one thing you can be sure with China will not go easy with US companies inside China.

US dont want CN keep selling phone, just keep recycling trash and be a good maid as CN has done since 1979 after Deng bowing down and lick US-JP azz for money

President Jimmy Carter (R) and Chinese Vice Premier Deng Xiaoping

You viet talk like you deserve a better place, we export our polluted manufacturing companies to Vietnam, so we can keep our country clean and let Vietnamese to do the job we Chinese don't want to do . Yeah talk about 1979, after slapping Vietnam so hard, we have earned the trust from western world that we were not in Soviet camp and was also a turning point for China which allow the nation to rise, we have achieved as world second economic power compare to a worthless Vietnam, 1979 mark the rise of China and deserve our celebration, it also marked the date of shame in Vietnam history.