Recently there have a lot of talks about the ban imposed on ZTE by the United States. The Chinese firm was accused of selling American technology to Iran bypassing the U.S. sanctions in 2016. While ZTE had paid a fine of $890 million and fired four executives; it did not reprimand 35 other employees as it had promised. The company has now been slapped with a seven-year-long ban. During these seven years, they will not be able to purchase any tech equipment from the American firms, which include Qualcomm and Google. Now, it appears that the things are getting more difficult for ZTE, as this issue is extending to other countries as well; for example, Taiwan.
Recently the Nikkei Asian Review reported that the Taiwanese government has directed all the companies on the island for suspending their shipments to the Chinese firm, until and unless they can show an approval. As of now, it is not clear whether this decision by the Taiwanese government was occasioned by the American authorities or the country has its own reasons for taking this measure.
The two major chipset makers in the world are Qualcomm and MediaTek. While the former is an American company, the latter belongs to Taiwan. So, for now, following the new ruling by the Taiwanese government, ZTE will be unable to source chips for their smartphones from both these firms.
The CEO of MediaTek, Rick Tsai has also confirmed the fact that they are suspending shipments to ZTE, as ordered by the country’s government.
“What we do [asking suppliers to apply for an export permit] was for the companies’ own good, to ensure they are doing legal business with the Chinese firms. We do not ban Taiwanese companies to do business with ZTE. … There is no reason for the government to reject their permit if their business activities are legal,” the deputy director-general and spokesman for the Bureau of Foreign Trade in Taiwan, David Hsu stated.