ZTE claims discrimination in US

Melissa Chua
19 Jan 2011

ZTE’s CEO for its USA office has stepped forward to claim that the China-based company faces prejudice in the United States due to its roots.

“Because of miscommunications and misperceptions of politicians in the US, we believe that ZTE is not being treated fairly in this marketplace,” Lixin Cheng toldBloomberg in an interview.

Cheng claimed ZTE’s growth was limited by government officials in the US as the company was constantly being classified in the same category as larger rival Huawei, which has attracted scrutiny in the country due to its supposed links to the Chinese military.

Bloomberg reported that Chinese telecommunications companies were being regarding with suspicion by the US China Economic and Security Review Commission, an independent 12-member panel that advises Congress.

The commission’s report had labeled ZTE a ‘quiet giant’ that supplied handsets to Western companies on an OEM basis and had hinted at security issues associated with the manufacture of wireless devices by Huawei and ZTE.

The report further said Huawei and ZTE had been getting financial assistance from the Chinese government, which enabled them to offer the attractive prices the firms are known for.

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