Trump Vows Action to Ease Job Loss at Chinese Tech Giant

Trump Vows Action to Ease Job Loss at Chinese Tech Giant


President Donald Trump says he is looking for a way to let a Chinese technology firm «get back into business fast» after a U.S. trade ruling severely crippled the company.

«Too many jobs in China lost,» Trump tweeted Sunday, days after ZTE announced it had ceased «major operating activities.»

The U.S. had cut off exports of U.S.-made parts to ZTE — more than 25 percent of the components ZTE needs to build its wireless stations, optical fiber networks and smartphones.

The U.S. cutoff came after ZTE was, in the words of one expert, «caught red-handed» putting the U.S. technology into products and selling those goods to countries under a U.S. trade embargo, including Iran and North Korea.

The U.S. fined ZTE $1.2 billion last year. But the U.S. said last month ZTE lied about punishing the employees believed to be involved in skirting the sanctions, paying them bonuses instead.

The Commerce Department cut off ZTE’s access to U.S. components until 2025, forcing it to shut down operations at its factory in Shenzhen.

Trump has often complained about China stealing U.S. jobs. But he tweeted he is working with Chinese President Xi Jinping to ease the economic fallout at ZTE and ordered the U.S. Commerce Department «to get it done!»

«The president’s tweet underscores the importance of a free, fair, balanced, and mutually beneficial economic trade and investment relationship between the United States and China,» White House Deputy Press Secretary Lindsay Walters said Sunday. «The administration is in contact with China on this issue, among others, in the bilateral relationship.»

Chinese Foreign Ministry spokesman Lu Kang told reporters Monday that China appreciates the U.S. position and that the two countries are discussing the issue.

The U.S. and China are due to hold their latest round of trade talks this week in Washington.

«China and the United States are working well together on trade, but past negotiations have been so one sided in favor of China, for so many years, that it is hard for them to make a deal that benefits both countries,» Trump said in another tweet. «But be cool, it will all work out!»

Douglas Jacobson, an attorney who represents suppliers who do business with ZTE, told VOA that Trump’s order to help ZTE is a stunning decision and one bound to make U.S. law enforcement officials unhappy by going over their heads.

A ZTE Axon7 device is displayed at company's booth during Mobile World Congress in Barcelona, Spain, Feb. 27, 2017.
A ZTE Axon7 device is displayed at company’s booth during Mobile World Congress in Barcelona, Spain, Feb. 27, 2017.

«This has caught all of those in the exports and sanctions world certainly by surprise and with some degree of shock and awe,» Jacobson said. «This is unprecedented that the president of the United States would intervene in what really is a law enforcement case.»

But Jacobson said the ZTE matter is not a sign of a general thaw in trade tensions between the U.S. and China, including the recent tit-for-tat tariffs.

Jacobson said he believes Trump may be willing to make a concession on China in exchange for China’s help with North Korea.

Steve Herman, Ken Bredemeier, Ira Mellman and Kenneth Schwartz contributed to this report.