Government-backed China Development Bank loans ZTE $20 billion

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ZTE confirmed in a press release that it has signed a financing agreement with China Development Bank. The deal will bring the company $20 billion over the next five years. The financing will be used for ZTE’s overseas projects and credit facilities for the company. China Development Bank is a policy bank of  the People’s Republic of China (PRC) that funds and oversees projects which further the government’s economic development policies.

Earlier this year, the US government said both Huawei and ZTE pose a national security threat because of their ties to the Chinese government. In a congressional report, US officials claimed that “Huawei and ZTE cannot be trusted to be free of foreign state influence” and added that “China has the means, opportunity and motive to use telecommunications companies for malicious purposes.”

[Via ZTE (PDF) and Reuters]

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