The giant Chinese telecommunications company ZTE (Zhongxing Telecommunication Equipment) is the reason for Chinese Premier Xi’s request to US President Trump to lift the US embargo on ZTE, ordered by the Obama administration following ZTE’s trade relations with North Korea on embargoed products. This order to establish trade relations with American companies has put ZTE in crisis and led to Xi’s request. Trump grants the request and temporarily suspends the embargo. The incident is a wake-up call for Beijing: Xi doesn’t want to find himself begging in front of the US president again. Huawei will take advantage of the lesson learned by seeking to become fully independent in its supply chain.
