The U.S. government has warned American consumers and businesses to steer clear of Huawei devices. Back in 2012, a U.S. Congressional Report stated that Huawei and ZTE could be a threat to national security.
Last year ZTE paid a whopping $1.19 billion fine to the U.S. government for selling goods and services to Iran and North Korea. At the time, the U.S. had a deal for the company.
It would suspend a seven-year product ban preventing ZTE from exporting components and parts. However, the U.S. Commerce Department has caught ZTE in a lie by breaking the rules.
As a result, ZTE is banned once again from exporting products made in the U.S., until March 13th, 2025. This could prevent ZTE from purchasing the Qualcomm Snapdragon chipsets that power its smartphones. Unless Samsung agrees to sell it some Exynos chips, or Huawei allows a rival access to the Kirin line of SOCs, this could prove to be a windfall for MediaTek.