According to a report from Reuters, ZTE may lose their Android license. As the current seventh-largest Android-based smartphone manufacturer, this would be a massive blow against the Shenzhen-based corporation. Even just losing access to the Google Play Store application would be incredibly detrimental to the beleaguered telecommunications-equipment maker.
https://www.notebookcheck.net/ZTE-faces-potential-Android-loss.299464.0.html
Most US international politics (including armed conflicts) is ultimately aimed at supporting US economic interests. Banning general purpose technologies like Android is however illegal and should be sanctioned by the WTO.
Cryptographical software was banned for export from USA for a long time until only a few years back: thus all open source encryption libraries were developed outside US or at least distributed through non-US servers. Basically, world has worked around it.
I don't see a problem with it being illegal, it's just silly and will eventually be counter-productive.
If US government was to ban distribution of software to a particular entity (country or company), it would basically force all free and open source software developers out. Guess what kind of software are most recent innovations based on.
Anyone remembers when 80486 DX processors were forbidden for export because they were too powerful? :|