China's Credit Line Blowback
The thorny issue of vendor financing and the support that Huawei and ZTE get from China's banks won't go away.
As Light Reading has reported in the past, both of China's major vendors have struck hefty credit agreements that enable them to offer cheap vendor financing loans to customers. (See Huawei's Lucky Number: 30B, Huawei, ZTE Strike New Funding Deals, and ZTE Secures $15B, Highlights R&D.)
Now, as our contributing editor Robert Clark writes in a blog, Blowback: China's vendor financing brings its own problems, some of the resulting deals are attracting unwelcome attention.
As Clark notes, greater transparency would help alleviate some of the problems now escalating for the vendors in Africa.
— Ray Le Maistre, Editor-in-Chief, Light Reading