ZTE has the potential to continue to gain market share in emerging markets despite tightening US controls on the use of its technology amid fears over its links to the Chinese Communist party, according to a report by Jefferies.
The embattled Chinese telecoms giant has won an estimated $60m contract to expand Indonesia’s 4G network, which, the investment bank said, was a sign of further growth potential in emerging market countries which “trust China more”.
The Jefferies report provided a rare upbeat view of ZTE. The company was earlier in the year crippled by a ban on the sale of its components to the US. This month it was again hit in the wake of a Bloomberg report claiming China implanted a micro chip in servers supplied to US technology companies and intelligence services.