The New York Times – China’s ZTE, Saved by U.S., Has a Checkered Past and Shaky Future
With this week’s deal to replace near-fatal American sanctions on the telecommunications giant with a $1 billion fine, the company will be able to get back to making smartphones and network equipment. Barred from buying American-made components for the past two months, it halted operations and will now have to mend relations with customers.
It will also need to confront deeper questions about its way of doing business, which has left a trail of accusations of bribery, overbilling and rule-breaking.
“Even with the ban lifted, operators will think twice about bringing them in, no matter what sorts of measures are taken from a transparency or compliance perspective,” said Bengt Nordstrom, chief executive of the telecom consultancy Northstream.