Chinese Government loans ZTE $20 billion for "overseas projects"

Chinese Government loans ZTE $20 billion for
Chinese ZTE has risen to the top five of the world’s biggest smartphone makers, but its ambitions don’t end there. The company has just gotten a gigantic boost in the form of a $20 billion loan from Government controlled China Development Bank.

$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.

source: Reuters

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13 Comments

1. smallworld

Posts: 517; Member since: Jul 13, 2012

China is rich.

2. asulect

Posts: 131; Member since: Aug 27, 2012

20B loan with no repayment neccessary if ZTE can successfully help China do spying.

3. _Bone_

Posts: 2155; Member since: Oct 29, 2012

Ain't you an internet 007!

7. MeoCao unregistered

This is certainly something else, a mixture of state patronage and corruption may be.

11. htc_prep

Posts: 303; Member since: Oct 09, 2009

Yea they are thats at least 2 dollars and change (USD) FOR EVERYONE in the world

4. thunderising

Posts: 232; Member since: Nov 25, 2011

ZTE is gonna rule the world. Hurray to $200 quad core phones! (UNLOCKED)

5. networkdood

Posts: 6330; Member since: Mar 31, 2010

spying....

12. htc_prep

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

6. MeoCao unregistered

There's a cutthroat price war is going on in China, almost every1 is selling phones at lost. The last man standing will be the winner and with the loan ZTE will not be the 1st to fall.

8. Wiki_jaan

Posts: 704; Member since: Jun 24, 2012

every company is spying ..... not only ZTE Apple is at 1st position

9. ryq24

Posts: 874; Member since: Oct 17, 2011

and that is why western companies will fall one by one as chinese government-backed companies will grow even further.

10. ibap

Posts: 867; Member since: Sep 09, 2009

This is a WTO issue. ZTE should be classified as a government agency. For that matter, doesn't the GO series of apps make anyone else uncomfortable too?

13. downphoenix

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.

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