ZTE Has Signed An Agreement With The US, But Challenges Still Lie Ahead

ZTE has had a rough few months in the US, essentially being tossed out of the US over its violation of sanctions with Iran and North Korea. Now the company has reportedly signed a deal with the US to open its US business once again. But that doesn't mean that ZTE is going to be back in the good graces of the US nor consumers. There are still plenty of challenges that lie ahead for the company.

In order to clear its path back to the US, ZTE has fixed its failures to meet conditions that were set by the Commerce Department under a settlement of a probe into the company's violation of US sanctions on Iran and North Korea. ZTE has also stripped job responsibilities and job titles from a number of senior employees. In addition, has also sent letters of reprimand and is looking to take bonuses back from 35 people within the company. ZTE is also facing a number of demands for compensation from other foreign telecom network operators, since their projects have stalled without supplies from ZTE being made available. And of course, ZTE is going to need to win back customers in the US and shake off the damage that has been caused to its reputation.

Currently, the US has not decided to begin shipping ZTE's products back into the country just yet, so it's not free and clear for the company yet. But it has shown that it is willing to make changes and get on the right path in the US. ZTE is actually a pretty large player in the US and North America. It has touted that it is the fourth largest smartphone maker in North America, and while its flagship smartphones aren't sold next to the Galaxy S9 or LG G7 ThinQ, its devices are sold at prepaid carriers as mid-range and low-end options. Which often times, sell better than flagship smartphones. So being kicked out of the US was a major blow to ZTE and the company knows it. And is doing everything it can to make amends.

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