Chinese Government loans ZTE $20 billion for "overseas projects"
posted by Victor H. / Dec 04, 2012, 6:49 AM
$20 billion! This is as much as Sprint recently agreed to get from SoftBank in exchange for 70% of its worth, and more than Nokia and RIM’s market valuation combined!
It is hard to understand what ZTE will use the money for, but one thing that’s clear is that those $20 billion will spread over five years. Here is the company’s murky official statement:
"The principal terms of the agreement include the provision by CDB of a $20 billion facility for cooperation, comprising financing facilities for the company's overseas projects and credit facilities for the company. The agreement forms the framework of business cooperation for an effective period of five years," ZTE said.
Our guess is ZTE will invest more in manufacturing for both its mobile and networking divisions, but we are yet to hear a more detailed breakdown.
Posts: 517; Member since: Jul 13, 2012
China is rich.
posted on Dec 04, 2012, 6:52 AM 1
Posts: 131; Member since: Aug 27, 2012
20B loan with no repayment neccessary if ZTE can successfully help China do spying.
posted on Dec 04, 2012, 7:15 AM 4
Posts: 6330; Member since: Mar 31, 2010
posted on Dec 04, 2012, 7:51 AM 1
Posts: 303; Member since: Oct 09, 2009
Every government utilizes their cellular companies to"monitor for national threats" Im Going to find the article here on PA that speaks to just how many times the us government has requested call logs sms gps locals an the what not. At least china is SOMEWHAT Open
posted on Dec 04, 2012, 11:05 AM 1
Posts: 3165; Member since: Jun 19, 2010
This is a 2 prong fight: 1) China wants ZTE to come out overwhelmingly on top over HTC, which is a Taiwan company, and China hates Taiwan. 2) They also want ZTE to best Samsung in the mobile market. They know that will be a long road ahead, so this huge loan is to help them acquire the manufacturing and r&d they need to be competitive with Samsung. This is not about security as the US so proclaims.
posted on Dec 04, 2012, 2:48 PM 0
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