On July 5, the US Department of Commerce temporarily/partially lifted the export ban on ZTE and the ban lift is expected to last from July 2, 2018, to August 1, 2018. However, the issued seven-year ban on ZTE is officially canceled. In order to comply with the lifting of the ban agreement with the US Department of Commerce, ZTE’s management recently paid a fine of $1 billion and another $400 million is kept in an escrow account. The ban had a huge impact on ZTE but the company has said that its core value has not been lost and its cash inflow is still in order.
At the just concluded ZTE stakeholders meeting, the company said that it is one of the few companies in the world capable of providing complete 5G end-to-end solutions, including wireless, cable, core network, cloud computing etc. Thus, it will rely on the upcoming 5G era to return back to its glory days. It said that most of its research and development was not seriously affected by the ban and the company is confident that it will return to its normal status within a short period of time after the ban is lifted.
Presently, ZTE has a good progress with 5G network architecture design, high-frequency communication, and IoT integration. In terms of 5G network chips, ZTE also has 7nm process design and development capabilities. It also has the industry’s largest 5G vector multi-processor high-performance baseband chip.