This trade and technology war that’s unfolding between China and the United States claimed its latest victim last week in smartphone maker and industry supplier ZTE. The U.S. government effectively barred the Chinese firm from buying American technology in a move that will severely impact ZTE’s ability to produce its own smartphones, and could send shockwaves throughout the rest of the smartphone supply chain.
The ban, according to a Nikkei report, stems from a March 2017 settlement between ZTE and the U.S. Commerce Department in which the company was found to have violated U.S. sanctions between 2010 and 2016 by shipping telecom equipment to Iran and North Korea and hiding those transactions through various means. ZTE acknowledged the wrongdoing, paid some $1.9 billion in fines, but continued to make similar transgressions during a probationary period.
So now they’re banned from doing business here.