The Trump Administration facilitates some restrictions on ZTE

The US Department of Commerce has granted ZTE a temporary authorization to manage the activities necessary to maintain existing networks, as China's telecommunications group seeks to evade an imposed export ban. by sanctions.

The maker of smartphones and telecom equipment is threatened since the Trump administration in April banned from supplying US components and software for seven years. Washington alleges that the company has breached the terms of a 2017 agreement on commercial activities in Iran and North Korea.

ZTE, which buys about 40% of its components to US companies, according to the IDC market study, was forced in May to suspend its major operations.

Last month, the company reached an agreement with the US government. pay a fine of $ 1.4 billion and replace his board in exchange for the ban lifting the ban on US components. ZTE unveiled last week a management overhaul

They have to find a way to solve this problem because telecom is an important part of the critical infrastructure of a country

ZTE to maintain existing networks, equipment and mobile phones in the United States and to provide support for computer security features.

Washington pointed out that the stay was temporary and that the export ban was still in effect. "The refusal order is still in place … The disclaimer does not authorize any new business between companies and ZTE," said a US official.

ZTE declined to comment

Analysts say the global reach of the company means its services are crucial to the operation of telecommunication systems, which may explain Washington's latest move .

"[ZTE] is present almost everywhere," said Dan Wang, technology badyst at Gavekal Dragonomics.

The biggest source of business income – 57% last year – comes from mainland China, according to its annual report, and the public telecommunications groups China Unicom and China Mobile are highly dependent on the ZTE equipment.

The company also has a wide reach in Africa. Although the continent accounts for only 3.5% of ZTE's business revenue, Ethiopia counts among its customers 3G and 4G networks almost fully equipped with Huawei and ZTE equipment, as well as the Nigeria, whose 4G network is also largely dependent on ZTE hardware.

"When things like this [US ban] happen, it's a crisis not only for the company itself, but also for the governments of other jurisdictions," he said. a lawyer based in Hong Kong. "They have to find a way to solve this problem because telecommunications are such an important part of a country's critical infrastructure."

M. Wang added that the ability to identify security issues the integrity of networks could have been another major concern for US officials. "The software updates are really complex, so any particular instance is not particularly important, but the ability to provide updates in general is," he said

. more difficult to exploit, it is difficult to change the entrepreneur quickly.

The one-month break could also give ZTE a means of financial survival in the short term. Like its peers, the company operates on a low-cost equipment sales model and derives its money from maintenance contracts. "Maintenance is the daily bread for these network equipment providers," said Nikhil Batra, senior telecom badyst at IDC, adding that 30 to 50 percent of an equipment provider's revenue usually come from maintenance contracts.

Additional report of Yuan Yang in Beijing, Louise Lucas in Hong Kong and Shawn Donnan in Washington.