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Looks like not only ZTE will be barred from buying from US suppliers..
The Trump administration is considering executive action to further restrict the sale of Chinese telecommunications equipment in the United States, people briefed on the discussions said, in a move that could ratchet up tensions between China and the United States as the countries vie for technological dominance. The executive order, which could be released within days, is expected to raise the barrier for government agencies to buy products from foreign telecom equipment providers like Huawei and ZTE, two of China’s most prominent technology firms. Private government contractors may also be restricted from buying foreign telecom products, which the United States believes may be vulnerable to Chinese espionage or disruption.
White House Considers Barring Chinese Telecom Sales as Tensions Mount - The New York Times
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05-07-2018, 04:02 AM
(This post was last modified: 05-07-2018, 04:03 AM by admin.)
LightCounting reports that the latest ban on sales to ZTE of U.S.-made products further complicates the market. In April, ZTE was convicted of failing to comply with the terms of a disciplinary agreement reached in March 2017 arising from U.S. export law violations (see "ZTE: Commerce ban could 'severely impact the survival and development' of company"). Last week, new information on the U.S. Justice Department's criminal investigation of Huawei regarding a potential violation of the same export sanctions against Iran emerged (see "U.S. now investigating Huawei: Reports"). As U.S. government officials travel to Beijing with plans to resolve the trade disputes, ZTE's and Huawei's situation will likely be bargaining chips, as will Qualcomm's NXP acquisition that is pending Chinese approval, LightCounting expects.
Cloud sales potential bright in 2018, but China situation cloudy: LightCounting - Lightwave
After the ZTE ban, Huawei next?
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Can others fill the void left by the ZTE ban?
"To the extent business to ZTE might be 'lost' it may not be permanent if other customers pick up the share," wrote analyst Stacy Rasgon from Bernstein. "However, in the near term there could of course be some disruptions," and a U.S.-China trade dispute could escalate. ZTE makes handsets and equipment for networks, and Piper/Jensen analyst Troy Jensen recommended stocks including Oclaro and Lumentum Holdings Inc (LITE.O), since they both also are suppliers to ZTE rival Huawei Technologies Co Ltd. "We believe Huawei will gain customers at ZTE's expense," he wrote in a note.
U.S. suppliers to ZTE may find more demand from China firm's rivals
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These guys are not happy..
ZTE Corp’s (0763.HK)(000063.SZ) main business operations have ceased due to a ban imposed by the U.S. government, but the Chinese firm is trying to have the ban modified or reversed, it said in exchange filings late on Wednesday.
China's ZTE Corp says main business operations cease due to U.S. ban | Reuters
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