China’s ZTE steps up expansion drive, unfazed by US restrictions

The Shenzhen-based company is aiming to overtake Nokia to become the world’s third largest telecoms equipment supplier

Reading Time:3 minutes

Unfazed by the pressure of keeping its US supply chain intact, ZTE has sharpened its focus on pre-5G mobile infrastructure deployments with network operators. Photo: SCMP Handout

Published: 8:00am, 28 Dec 2016Updated: 1:15pm, 29 Dec 2016

While operating under the shadow of United States export restrictions for most of this year, ZTE Corp has managed to weather that crisis and push forward a business expansion strategy that could set it up for accelerated growth over the next few years.

Spokesman David Dai Shui said Shenzhen-based ZTE is firmly resolved to eventually become the world’s third-biggest telecommunications equipment supplier, following industry leader Huawei Technologies and Swiss powerhouse Ericsson.

“We’re now No 4 in the world [behind Nokia],” Dai said. “We’re very confident of becoming a top-three [telecommunications equipment] vendor in the next several years.”

That would be welcome news for investors in ZTE, who have seen the company’s share price decline 14.6 per cent in the 12 months to December 23.

Last month, the Bureau of Industry and Security of the US Department of Commerce granted ZTE a reprieve for the fourth time from export restrictions for violating Washington’s long-standing trade sanctions on Iran.

The bureau had slapped ZTE with export restrictions in early March, which would bar suppliers from shipping any US-made equipment and parts to the Chinese company.