But now, the fate of vendors from the Bamboo Curtain country is no longer the same. The reason, LeEco experiencing a massive financial crisis. Business analysts assess LeEco will continue to slump and could go bankrupt if not do the initiative to overhaul its business model.
Latest, LeEco's private asset, Jia Yueting, was frozen by a court in Shanghai, China. Assets worth 1.24 billion yuan is money belonging to Jia, his wife, and three other people who still have important links with the company.
Assets with unmitigated value are forced to be blocked. Because, LeEco can not afford to pay interest on bank loans to fund its smartphone business.
The company's turmoil began when LeEco plans to sell its equipment in the United States (US) market by the end of 2016. Unfortunately, LeEco is too heavily poured funds and finally difficulties.
LeEco was forced to cut operating costs, even reducing the number of employees by laid off.
As of May 2017, LeEco has also reduced approximately more than 300 employees in the US. That number reaches almost three-quarters of the local workers there.