ZTE - A Pawn in the Trade War between the U.S. and China

Keywords: ZTE, microchips, ban, telecommunications, smart phone, trade disputes, macro environment, ethics, business-government relations

Abstract: ZTE, a Chinese telecommunications company, faced an existential threat in mid-April, 2018 when the U.S. Commerce Department banned it from purchasing components from U.S. suppliers. The case study delves into the causes and effects of the ban and its subsequent reversal in the same year. It sheds light on the interconnectedness and interdependency of today’s multinational corporations and the precariousness of their operations in the current environment of trade disputes. Discussion questions and teaching notes are provided.