ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Trade war

US ban on ZTE threatens to rattle smartphone supply chain

Chinese company's production nearly grinds to a halt as US parts supply dries up

A worker assembles telecommunications equipment at a ZTE plant in Shenzhen. ZTE has all but halted production after losing access to vital U.S.-made parts. (Photo by Yu Nakamura)

BEIJING -- The U.S. government's move last week to bar ZTE from buying American technology looks set to not only cripple the Chinese smartphone maker, but reverberate through the global telecommunications supply chain as well.

"We're blocked from calling or exchanging technology with [American] business partners like Qualcomm, Intel and Broadcom," a ZTE insider said with a hint of resignation. Chinese media have reported that even though the company's parts inventories should last another month, production has already slowed to a near standstill.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more