Hu Xijin, editor of government-run Global Times, wrote "We are all ZTE tonight," echoing Jack Kennedy to support the 80,000 workers of ZTE. “Two thousand years ago, the proudest boast was ‘Civis Romanus sum.' Today, in the world of freedom, the proudest boast is ‘Ich bin ein Berliner!’ ” Lily Kou of the Guardian reports a strong backlash in China to the U.S. Government total ban on ZTE.
The ZTE ruling portends that the United States government could shut down at will virtually any phone or telecom supplier in the world. I confirmed with Commerce that the decree covers software and technology. Reuters reported that Google may have to cut off Android apps, destroying ZTE's phone business, which ships 40,000,000 units a year. Qualcomm & Broadcom can't sell chips to ZTE, probably a billion dollars a year.
Every manufacturer outside the United States has to fear similar U.S. action, not just the Chinese. For example, Samsung could be affected if the U.S. wanted to punish South Korea for making a separate peace with the North.
Any sensible company will immediately start researching how to design products without any U.S. content. The Chinese are already spending $100B to build memory chips. They've just promised to up the government spending on 5G.Add a comment