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US-China trade war
Tech

Lifting of US export ban brings relief to ZTE staff, who had feared for jobs

Sense of relief for workers at ZTE after US ban is lifted

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A cell phone manufactured by ZTE. Photo: AFP
Celia Chenin Shenzhen

News that the US export ban has been lifted on Chinese telecom equipment maker ZTE will come as a welcome relief to its 80,000 strong workforce and those who work in ancillary industries.

US Commerce Secretary Wilbur Ross on Thursday announced the end of sanctions against ZTE in a deal that imposes a US$1 billion penalty on the company and the installation of a US-selected compliance team to prevent further incidents of the sort that initially prompted the Commerce Department to cut ZTE off from its US suppliers.

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The move looks set to bring to a close a lengthy period of negotiations, which began when US President Donald Trump said earlier in May that he had asked the Commerce Department to help Chinese technology company ZTE Corp “get back into business, fast” after being crippled by the US ban, in what was seen by many observers as a concession to Beijing ahead of high-stakes trade talks.

US President Donald Trump chats with Chinese President Xi Jinping. Photo: AP
US President Donald Trump chats with Chinese President Xi Jinping. Photo: AP
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“Too many jobs in China lost. Commerce Department has been instructed to get it done!” Trump wrote on Twitter at the time, saying he was working with Chinese President Xi Jinping on a solution.

One ZTE worker, speaking on condition of anonymity, said he had started looking for a new job in April after working for the company for a year and half. Around that time, he said, many workers at the Shenzhen-based company had started to reach out to potential new employers in China’s high-tech industries for fear of losing their existing job.

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