ZTE Seeks Fix With U.S. Ban Threatening Access to Android

  • Google’s Android operating system powers ZTE phones globally
  • Losing Android access would be big blow to ZTE phone business
Jefferies’ Edison Lee weighs in on the U.S. decision to ban ZTE from buying crucial American technology for 7 years.(Source: Bloomberg)
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ZTE Corp. executives are evaluating software options for the company’s smartphones after a U.S. technology ban threatened to cut off the operating system at the heart of its devices, a person with knowledge of the matter said.

The Android operating system, designed by Google, is the core of ZTE smartphones, powering user-facing functions, apps, and other services. That means the software likely falls under Monday’s U.S. government order denying China’s ZTE access to American technology for seven years. Trading in ZTE shares was suspended in Hong Kong soon after the announcement.