China is home to several major telecoms that have often attracted the ire of US lawmakers: ZTE and Huawei. In 2017, the US Department of Commerce determined that ZTE had “conspired to evade” US sanctions against Iran and North Korea by selling the countries US-made hardware and software. As a result, the US slapped a $1.2 billion fine on the company. Along the way, US lawmakers have cited potential ties between ZTE, Huawei, and the Chinese government as potential security risks, and they have introduced various bills to prohibit the federal government from purchasing or using equipment from the companies. Various heads of the US military and intelligence services have similarly echoed concerns and stopped selling the phones in retail stores. In April, the US Department of Commerce prohibited ZTE from purchasing US-made technology when it didn’t comply with its fine, which essentially put the company in jeopardy of dying. In recent weeks, the US and China have begun efforts to find a way to keep the company afloat.
