Affected By European And U.S. Sanctions, ZTE Has Started Laying Off Employees

According to media reports in Communist China, the state-owned Communications Equipment Manufacturer “ZTE” has initiated layoffs, involving wireless research institutes, terminals and other research institutes and departments, with a layoff ratio of about 10%-20%. In March 2021, the U.S. Federal Communications Commission (FCC), in accordance with the “Secure and Trusted Communications Networks Act”, identified five companies of Communist China including Huawei and ZTE as threatening U.S. national security. Last November, the FCC announced a ban on the import or sale of products and services from ZTE and Huawei, as they are deemed to pose “unacceptable national security risks” of communications equipment. Meanwhile, the “Five Eyes”, an intelligence-sharing network formed by the United States, Canada, Australia, the United Kingdom, and New Zealand, strictly prohibits the use of Huawei and ZTE equipment in 5G wireless networks due to national security considerations. Sanctions have caused shrinkage in business, resulting in massive layoffs. It is reported that the layoffs will not only affect new employees who have joined in recent years, but also senior employees who have worked for more than 10 years. It is expected that more employees will face unemployment.