The Trump administration just came to an agreement to lift crippling sanctions against Chinese telecommunications giant ZTE. Ending the sanctions banning US companies from selling hardware or software to ZTE could save the company, which announced last month that it had suspended its major operations due to the restrictions. But the tensions between the US and China are far from over.
Congress is investigating both Google and Facebook over their dealings with Huawei and other Chinese firms. Meanwhile, the US memory-chip-maker Micron is among three companies under investigation in China for price fixing. And those are just the latest moves in an ongoing “cold trade war” between the US and China, which constantly threatens to erupt into a full-blown trade war.
But this latest trade news also shows how interconnected the two countries’ economies are, despite escalating tensions between their governments. ZTE’s and Huawei’s products depend heavily [...]