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Looks like the Google play issue has been resolved with Android 7.1.1. The A7 mini can now do HD playback.
https://s4.postimg.org/89uzqyg6l/Screenshot_2017-06-24-16-55-12.jpg
Comments
They probably won't be displayed in HD. This was also an issue on the regular A7. The device, in order to play HD content, must be Widevine L1 certified.
ZTE do not have the certification, and I don't know if they even asked for it. Without this, the maximum resolution is 480p.
This was an issue with the A7. It was marked as resolved by @sshasan , but unfortunatly we never got the answer (or I missed it) on what was resolved.