China's ZTE halts operations after U.S. sanctions onslaught

Photo: Johannes Eisele/AFP via Getty Images

Chinese phone manufacturer ZTE announced in a note to investors Wednesday that its major operations have ceased as a result of a U.S. ban on American companies selling parts to the company.

Why it matters: U.S. sanctions have brought operations at a major Chinese company to a screeching halt. It's a sign that, even as China gets bigger and stronger, Washington still has significant economic leverage over Beijing.