The Chinese may have to pay a big price as a result of the ongoing cold war between the United States of America and itself.
ZTE, one of the most renowned makers of electronics, has already ceased the operations of various major activities. This incident took place as the Trump administration had restricted it from using any item manufactured in the USA.
The plant of ZTE at Shenzhen has already the halted the production of any item, while the employees are either attending frequent training sessions or moving around freely.
The company had already put a stop to the trading and has regulated a new set of instructions for the employees. It said to maintain a calm ambiance regarding the entire situation and deliver the same message to the clients. It further mentioned to keep the discussion highly selective and avoid mentioning the decision of the Trump administration. The decision includes keeping the company away from the American technology for 7 years.
ZTE is known to earn about $17 billion annually, which is the most prominent business house in China. However, it is now facing a tough challenge with suspended production and trading. The decision of banning the company from accessing the American-built components till 2025 was made by the Commerce Department. It concluded the drastic decision, as ZTE failed to implement justified punishments on the workers who have intentionally sabotaged the trade controls against North Korea and Iran.
If the trail of the events causes ZTE to crash, the world will witness a fresh ripple of a cold war in the tech world. The company is jammed with 75,000 companies and is spread across 160 countries. It is also among the top 4 smartphone vendors in the USA and is counted as the robust backbone in the digital world.
However, the company is putting an intense endeavor to get over the current situation and reconcile with the office of Trump.