ZTE Phones OS Problems

ZTE Corp executives are investigating software options

for the company’s smartphones after a US technology

ban threatened to cut off the operating system at the heart

of its devices, a source said.

The Android operating system, designed by Google, is

the core of ZTE smartphones, powering their apps and

other services.  

The US Commerce Department on Monday banned

American firms from selling parts and software to ZTE

for seven years. The move was sparked by ZTE’s

violation of an agreement that was reached after it was

caught illegally shipping US goods to Iran.

The move threatens to further complicate relations

between the United States and China. The two countries

have already proposed tens of billions of dollars in tariffs

in recent weeks, stoking fears of a full-blown trade war

that could hurt global supply chains as well as business

investment plans.

ZTE lawyers have been meeting with Google officials

about the issue, according to the source with knowledge

of the matter, who asked not to be identified because

the talks were private.