This article only represents the author's own views.

Crippling U.S. sanctions on ZTE Corp. (0763.HK; 000063.SZ) in 2018 brought the Chinese telecoms giant to the brink of collapse, forcing it to pay a historic $1.4 billion penalty and overhaul its leadership to secure relief. Since then, the company has embarked on a grueling recovery path, pivoting to lower its reliance on U.S. suppliers, strengthen its position in the domestic market, and broaden its product portfolio beyond telecoms equipment.

By 2022, ZTE appeared to turn a corner as its annual revenue finally rebounded to surpass pre-sanctions levels in 2017, signaling a tentative comeback. But the company’s latest financial report for 2024 paints a more complex picture. Decelerating revenue growth, compressed profit margins, and persistent tensions between Beijing and Washington are casting shadows over the sustainability of its recovery in an increasingly fractured global technology landscape.