Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
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.
The backdrop: ZTE violated U.S. sanctions by selling equipment made with American parts to Iran and North Korea, and, in March, the Department of Commerce banned American companies from selling to it for seven years.
Yes, but — from Axios' Joe Uchill: Short-term action from the U.S. against ZTE may strengthen Chinese tech in the long run as China invests in its domestic semiconductor industry to cut reliance on the West.