On Breakingviews – China’s 5G noise scrambles ZTE’s positive signals, says mak_robyn:
FILE PHOTO: People walk past a ZTE logo outside its booth at the Mobile World Congress in Barcelona, Spain, Feb. 25, 2019. REUTERS/Sergio Perez/File Photo
Accusations from U.S. authorities that it had breached a 2017 settlement over sanctions violations left the $16 billion state-backed group on the brink of collapse. An April 2018 ruling barred American companies from exporting to ZTE, crippling its smartphones and telecoms equipment businesses. That ended after ZTE agreed in June to pay out $1.4 billion in penalties, and replaced top executives.
Investors, though, have been willing to look through the trouble, eyeing a much bigger prize ahead. China’s three main carriers are expected to pour billions into new ultra-fast wireless networks nationwide. Beijing wants to become a global leader in 5G technology, and that’s good news for ZTE, larger rival Huawei, and mobile mast-operator China Tower.
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