Economics
China’s ZTE Ceases Major Operations After U.S. Trade Ban
- The seven-year blockade is worsening China-U.S. trade tensions
- Its future remains uncertain given it can’t get crucial chips
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ZTE Corp. regards the next two weeks as crucial to resolving a U.S. blockade that’s brought its main businesses to a standstill and choked off revenue, signaling the potential collapse of one of the world’s largest makers of phones and networking gear.
The No. 2 Chinese telecom equipment maker said Thursday it’s suspended all major operations. That means its three main divisions -- network gear, devices and enterprise solutions -- have all but halted sales and aren’t bringing in sizable income, a person familiar with the matter said. ZTE specified the coming fortnight as a “critical window” and urged managers to calm employees, according to an email to senior staff seen by Bloomberg News.