U.S. smackdown of ZTE proves Xi’s point
The U.S. Department of Commerce may have issued a corporate death sentence to Chinese telecom equipment maker by banning American firms from selling to it for 7 years. The company condemned the ban today, but the U.S. is unlikely to reverse its decision.
The big picture: While the company may end up crippled, the episode has strategic and propaganda value for Beijing. The timing of the announcement — right before the 2nd anniversary of an important speech on cybersecurity and technology made by Chinese President Xi Jinping — only serves to strengthen the point he's been making about the need to reduce reliance on foreign, and especially American, technologies.