This totally plays into the hands of the Chinese. The USA will be more and more seen as an unreliably business partner where single individuals have too much influence over international commerce and globally significant arrangements. So China will be 'open for business' and other countries will see this as a good reason to shop for alternatives, and in the meantime internal politics in China will silence the voices advocating moderation and de-escalation.
What stops ZTE from creating a proxy company through which to buy the components?
Or another one to also build their phones and products.
As someone who's not very familiar this area of US government, was this more of an autonomous prosecution kind of like "you broke the law you pay"? Or was this more motivated by the recent trade skirmish with China, being used as a pawn so to speak?
I'm no expert, but I would've guessed that denying ZTE access to US consumers would've been a more effective punishment than denying it access to US component suppliers.
ADDED. Maybe the former would've gone against WTO rules or GATT rules.
Oh I was wondering why T-Mobile discontinued the ZTE smartwatch so quickly after releasing it but I think I understand now. Shame it looked like it had semi decent specs.
Concerns about digital sovereignty will be one of the primary forces shaping the tech industry for years to come. Governments are realizing that they can’t depend on companies controlled by potential adversaries. They must expect that other governments will turn their companies into arms of their security apparatus.
This action is ostensibly about sanctions on North Korea, but it’s clearly part of a bigger battle where both the US and China are trying to reduce their technological reliance on, and vulnerability to, the other.
If the US and China got into a war, does anyone doubt that the US would seriously consider ordering Apple and Google to deliver “updates” turning devices in China into spying tools? Or demand that FB hand over the private messages of all foreign users?
And does anyone doubt that China would consider doing the same with Huawei or ZTE phones and networking equipment?
Hopefully the Chinese won't ban their companies from selling to US companies because we'll be screwed... specially because US companies design things to break fast.