Will Chinese tech finally become independent after ZTE sales ban?

ZTE, a top smartphone seller in the United States, has been banned from buying equipment parts from US companies such as Qualcomm and Dolby for the next seven years.

Last year, ZTE was hit with a fine of 890 million dollars after pleading guilty to violating US sanctions by selling US goods and technology to the DPRK and Iran. In addition, the company is going to face the possible additional penalty of 300 million dollars.

Officials from the US department of commerce stressed that the ZTE ban is not a derivative measure related to the China and US disputes. However, Li Yong, the senior fellow at the China Association of International Trade, said it is hard to not consider these pieces as a cake.

“The China and US trade relation is under great pressure. We can see the tariffs [going] from 50 billion to additional 100 billion dollars. And all of these things are pointing to the disputes. I think any actions need to be made very [carefully],” Li added.

Meanwhile, there are concerns about the impact of pushing for a 5G network in the future. The ban may negatively affect the performance of communication equipment business as well as current global and Chinese network construction.

Li claimed that the ban will bring back the discussion of independence and self-reliance. At least, at a company level, they should think about the possibility.

“American companies used to have deep business relation with Chinese companies. And whether the relation would be affected or destroyed, the result may reinforce the Chinese policy direction such as promoting development of 'Made in China 2025',” Li noted.

(CGTN)