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The U.S. ban on China's ZTE has been lifted

Figures silhouetted in front of the ZTE logo
A ZTE presentation at a conference in Barcelona. Photo: Miquel Benitez/Getty Images

After three months and the effective shutdown of phone maker ZTE, the Commerce Department has officially lifted a ban on American suppliers selling to the Chinese company, reports Reuters, and ZTE shares are soaring.

Why it matters: The fact that a ban on American parts prompted ZTE to shut down operations is a clear example of the significant leverage U.S. tech companies have over China. But Chinese President Xi Jinping was able to successfully lobby President Trump and save ZTE. That sets a dangerous precedent for U.S.–China negotiations on trade and intellectual property theft.