ZTE says it was targeted largely because of its scale. The committee's fear that ZTE would be subject to state influence applies to "any company operating in China," it says.
Avoid their stocks until the Cold War unfreezes. Huawei (002502.SZ) shares are hovering near historical lows that are about half their worth two years ago. Since July, ZTE (0763.HK) shares have tested their lowest point since the global financial crisis.
In the United States, the chief prize among the three Western countries citing security concerns, expect local firms to pick up telecom contracts, especially around elections where candidates are under pressure to back local business.
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