ZTE receives $5 billion in additional funding
06 December 2012 |
Chinese vendor ZTE has received $5 billion in additional funding from China Development Bank.
The move expands on a strategic partnership agreement with the state-owned bank established in 2009, which saw $15 billion in funding made available.
The additional funding is thought to support the vendor’s investment and growth overseas.
Along with rival Chinese vendor Huawei, ZTE has faced strong opposition in several major overseas markets, all concerned with the companies’ connections to government entities.
In October, it was reported that a draft report by the US House of Representatives’ Intelligence Committee suggests shutting out Huawei and ZTE from the US market due to the security threat posed by the two companies.
Earlier this year, the companies were also facing investigation by the European Union into whether they had received illegal subsidies from the Chinese government. The case has since been stalled.
In July, ZTE revealed its shares were at their lowest level in three years, dropping by as much as 17%.
While the additional funding might help the company’s financial situation, it seems unlikely to ease overseas concern about the ties between the company and the state.
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