ZTE has denied reports that it is negotiating a major restructuring of its smartphone business through a new joint venture with a Chinese internet company and Shanghai-backed investors. The company said the reports seriously differ from reality and reserved the right to take legal action.
The reported transaction would have valued the smartphone operation at roughly CNY 40 billion. The unnamed internet-sector partner was said to be considering an investment of about CNY 8 billion. National Business Daily also sought comment from ZTE and received the same denial.
Reports described a potential deal covering ZTE’s consumer phone business in China and international markets. The alleged reorganization would reportedly exclude RedMagic, ZTE’s gaming-focused brand, while routers and home terminals would remain under the parent company.
A subsidiary established in April 2025 was identified in the reports as a possible vehicle for the proposed restructuring. With ZTE publicly disputing the claims, it remains unclear whether any transaction or broader smartphone-business reorganization is under consideration.
