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The View | Expect the unexpected? ZTE and Starbucks’ experiences offer sobering lessons for business owners

Stephen Vines looks at how recent events have separately dealt blows to ZTE’s supply chain and Starbucks’ reputation, bringing home the challenges of running a business in these times of uncertainty

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Protesters march down Market Street in Philadelphia on April 19, a week after two black men were arrested at a Starbucks coffee shop in Philadelphia, Pennsylvania. The company has been forced into damage-limitation mode after the arrests. Photo: Reuters
Things had been pretty peachy over at Shenzhen-based ZTE, the world’s fourth-largest telecommunications equipment supplier. Then, suddenly, the company learned that a ban was to be imposed on US companies providing it with supplies, and possibly intellectual property, a crippling and abrupt blow to ZTE’s supply chain. 
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The news caused its shares to be suspended, amidst dire predictions of the consequences. 

It is quite possible that ZTE’s management had braced themselves to become an incidental casualty of the burgeoning US-China trade war, most likely foreseeing that it would affect the export of its products to America. What was not expected was the reverse, in which American imports would be cut off. 
As it turned out, the threat to its exports came from another quarter, when Britain’s cyber watchdog announced that it was blacklisting ZTE as a supplier on national security grounds. 
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Chinese telecom equipment maker ZTE holds a press conference at its headquarters in Shenzhen on April 20. Photo: Xinhua
Chinese telecom equipment maker ZTE holds a press conference at its headquarters in Shenzhen on April 20. Photo: Xinhua 
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