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Trade war

US and China enter digital arms race after ZTE spat

Washington eyes Huawei next while Beijing rushes to be self-sufficient

Facial recognition software is advertised at the Global Mobile Internet Conference in Beijing in April. The ZTE saga has hardened China's resolve to develop its own technology.   © Reuters

BEIJING/WASHINGTON -- The U.S. government's recent deal to lift sanctions on Chinese mobile device maker ZTE has settled a high-profile trade dispute but also suggests the beginning of a new digital cold war between the world's two largest economies.

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