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U.S. Ban Risks Leaving China’s Rising Tech Star ‘Half Dead’

  • ZTE grapples with a seven-year ban on critical U.S. gear
  • It runs afoul of Washington just as U.S.-China tensions rise
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Jefferies’ Edison Lee weighs in on the U.S. decision to ban ZTE from buying crucial American technology for 7 years.(Source: Bloomberg)
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ZTE Corp. may have just gone from being a serious contender in the high-stakes world of next-generation networking to -- quite possibly -- a mobile industry washout.

China’s No. 2 telecommunications gear-maker was preparing to lead the country’s charge into the era of blazing fast fifth-generation wireless technology, along with local rival Huawei Technologies Co. Instead, ZTE ran afoul of Washington for the second time in a year, inciting a moratorium on purchases from U.S. suppliers and dealing a devastating blow to its global ambitions. Its U.S.-traded securities plunged the most since 2008.