ZTE steps up 5G investments as it seeks comeback after near-death experience – South China Morning Post

What happened: Shenzhen-based telecommunications equipment maker ZTE is expected to build three cybersecurity evaluation centers in China, Belgium, and Italy this year, similar to the one that Huawei operates under the supervision of the UK government. ZTE aims to reassure government agencies and telecoms network operators about the integrity and security of its 5G equipment. The company already secured six commercial 5G contracts in addition to its vast supply deals with China Mobile, China Unicom, and China Telecom, the three major telecoms network operators in China. The company will soon release a white paper about its 5G cybersecurity efforts.

Why it’s important: ZTE has kept a low profile since last March when the company was brought to the brink of collapse after Washington DC banned American companies from selling components to the Chinese company for violating US sanctions against Iran. As the fourth largest telecoms equipment supplier worldwide, ZTE is unlikely to abstain from the 5G race. On top of the six commercial 5G contracts mentioned above, the company has also been cooperating with about 30 telecoms network operators around the world on 5G research and development as of the end of February.

Wei Sheng

Writing about semiconductors and telecommunications.

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