Parts and software has been banned from being sold to ZTE.

ZTE will no longer be able to receive parts or software support from US companies. ZTE is a phone company, headquartered in China, known for mid-tier phones sold to budget smartphone carriers as well as AT&T, Verizon, Sprint, and T-Mobile.

This ban was a result of ZTE’s employees shipping US goods to Iran. Though this ban would surely kill the second largest phone maker out of China, it will also put pressure on American chip manufacturers, software developers, and Google to refrain from profiting off of the company. China made it clear that they would protect Chinese companies.

Though ZTE has the most to lose from this ban, it will be interesting to see how this will effect other businesses profiting from China’s growing economy. This came right after the tariff spat between the US and China.

Do you see this to be justified?

Reuters