ZTE Denies Reports of $5.6 Billion Smartphone Business Sale
ZTE has refuted claims that it plans to sell its smartphone division in a $5.6 billion joint venture, stating the reports are inaccurate and it may pursue legal action.
Chinese telecommunications equipment maker ZTE has denied media reports suggesting it is planning to transfer its smartphone business into a new joint venture valued at approximately $5.6 billion. The company dismissed the claims as inaccurate on November 3, according to statements made to several Chinese news outlets.
The original report, which circulated earlier, claimed that ZTE was in negotiations with a major Chinese internet company and Shanghai state-owned investors to restructure its consumer smartphone operations. According to The Paper, ZTE also indicated that it reserves the right to take legal action over the publication and circulation of the claims.
The report had alleged that the proposed joint venture would involve three parties: ZTE, an unnamed major internet company, and Shanghai state-owned investors. It suggested that the internet company was considering an investment of around $1.1 billion. However, the final valuation, ownership percentages, and transaction structure were said to be undecided.
Discussions were reportedly initiated in April 2026 and gained momentum in July, with the parties allegedly close to agreeing on a cooperation model by September and an announcement planned for late October. That announcement never materialized, and ZTE has now firmly rejected the claims.
The proposal was said to cover ZTE's consumer smartphone operations in both China and international markets, rather than a sale of the entire company. ZTE's denial underscores the sensitivity surrounding its smartphone business, which has faced challenges in recent years amid intense competition and geopolitical pressures.
