After the controversy of Huawei and ZTE in the US in which security agencies such as FBI and CIA have recommended not using Chinese companies' products, here is another problem at ZTE.
While Huawei's problems revolve around the US government's distrust of possible espionage, ZTE's situation is far worse. Unlike Huawei, ZTE will not be able to negotiate with any US company.
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I know this is going to be a talk in the next few days, so I will explain to you here the situations of ZTE and Huawei quickly.
Although in theory the problem was identical, ZTE has just lost a court case banning all US manufacturers from negotiating with the Chinese company.
Let's start with Huawei
Let's start with Huawei. The Asian brand has been trying to enter the US market but without much luck. US law enforcement is concerned about spying on branded customers to the Chinese government.
This is because Huawei uses its own processors and internal components. Assuming the Mate 10 would use Qualcomm processor and Qualcomm network cards as well. Huawei would have no problem entering the market. This is because security officials would always be able to tell if Huawei has changed something internally to leak information.
With Kirin processors (made by Huawei) things are not quite so. The technology is not the same and for security entities to "scour" the processors inside Huawei the brand would need to give authorizations and guides to it.
The problem of ZTE is totally different. ZTE uses (or used) Qualcomm processors so it could market terminals in the US. Incidentally, the brand is in the fourth position of sales in the American market.
What happened to ZTE?
ZTE has been found guilty of marketing US and destined US products to North Korea and Iran. This is contrary to US law. The decision was simple. The brand would have to fire all executives and employees involved in the situation and pay a $ 890 million fine.
The fine was paid, but employees not only stayed at the company but received bonuses for the deal.
ZTE has failed to comply with the possible agreement with the United States government and has resulted in a business impediment with US companies for 7 years.
This means companies like Qualcomm or even Google will not be able to negotiate with the Chinese company. In other words, the brand is basically out of the world of tops. MediaTek does not manufacture high-end processors and solutions are few.
We still have the Google Play Store issue. Although Android is a free platform, the Google Play Store is a product of Google. In this impediment, US companies cannot sell products or services to ZTE.
The subject of Huawei and ZTE will have a lot to talk about soon. I hope this summary has shed some light on you.
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