ZTE blocked the United States | Is the next goal Huawei?

Yesterday, the U.S. Department of Commerce issued a ban on ZTE’s export authority to prohibit U.S. companies from selling components to them for a period of seven years. The day before the U.S. issued an export ban, the U.S. cybersecurity watchdog issued a warning demanding that telecommunications operators Do not use ZTE's equipment because its ownership is a national security concern.

ZTE and Hong Kong stocks both suspended trading under the influence of the US blockade of ZTE. ZTE's share price of suppliers in Greater China dropped, China Fortune fell 7.32%, and Tianhe Defense fell 2.87%. At the same time, 300 billion yuan circulation. Hikvision, a technology-capitalizing technology company, was once lying on the daily limit. This made us really feel that the taste of lying on the gun is not good!

In the face of ZTE’s full blockade by the U.S. government, many people are worried that Huawei will become the next target of the U.S., so that China’s scientific and technological development will encounter major setbacks. Some people believe that the U.S. government is taking the opportunity to provoke trade issues. The US trade war will be upgraded again. The Ministry of Commerce of the People's Republic of China has also expressed close attention to the progress of the situation and is ready to take measures to safeguard the legitimate rights and interests of Chinese enterprises.

Now that the issue has arisen, has the US completely blocked the ZTE incident? Is it because of the escalation of the trade war between China and the US? Does ZTE itself have a disaster? After the incident occurred, will the US government immediately refer to Huawei, which is also a big Chinese telecommunications industry? ?

First, the case that ZTE was blocked by the United States is just an example. It is not the escalation of trade friction between China and the United States. The reason why the United States blocked CITIC Communications was that it illegally transported US goods and technology to Iran and North Korea and violated the US sanctions regulations.

Therefore, as early as 2016, the United States imposed sanctions on ZTE. Before any American company sells parts or instruments to ZTE, it must apply for export permits from the Ministry of Commerce. After active consultation between the parties, the US government announced 'temporary' Suspended the sanctions against ZTE and granted ZTE a temporary export license for 3 months.

However, in March 2017, ZTE confiscated the penalty and agreed to pay a fine of US$892 million to the United States for accusing it of illegally selling US technology and obstructing judicial investigations to Iran and North Korea. If the subsequent breach of the agreement with the U.S. Department of Commerce, ZTE still required additional Paying 300 million U.S. dollars in fines. Originally, ZTE made a fine and resolved the matter properly. The incident ended.

However, in accordance with the announcement of the US Department of Commerce issued on April 16, 2018, ZTE provided false statements to the US Department of Commerce prior to ZTE. According to the previous settlement agreement, ZTE promised to dismiss 4 senior employees and reduce bonuses or penalties. In other ways, 35 employees were punished. However, ZTE dismissed only four senior employees and did not penalize or reduce the bonus of 35 employees. This led the US to believe that ZTE was not sincere about implementing the settlement agreement.

In this regard, even the U.S. Department of Commerce officials denied that the Sino-U.S. trade friction escalated. According to the U.S. side's statement: 'ZTE's violations were initially initiated with the Obama administration. Until recently, there were results'. We also believe that This time, ZTE was completely blocked. This can only show that this is an example and will not affect Huawei's external product output.

Moreover, ZTE was punished. It only happened during this special period. It is very easy for people to escalate with the trade war. In fact, ZTE’s penalties are completely different from the starting point of the trade war. ZTE’s sale of chips is a restriction on the export of high-tech products from the United States. This is exactly the opposite of the logic of the trade war to expand China’s imports from the United States. Therefore, it can only be understood as a single case.

Finally, Huawei’s reputation at home and abroad is good. The US government may not be able to justify the sanctions against Huawei. This is because Huawei is a Chinese private company and the US government may be able to curb its business expansion in the US market, but it is not possible to completely block it.

In addition, although Huawei cannot completely get rid of its dependence on US-made chips, Huawei has been developing its own chips and core components in the past two years. At present, it seems that prohibiting U.S. companies from exporting chips is also a case of being penalized for ZTE's case. .

At present, when public opinion is heard by public opinion on the overall blockade of ZTE by the United States, it is believed that the Trump administration will once again pick the trade dispute between China and the United States. The next goal of the United States is Huawei. However, we believe that ZTE’s blockade and trade friction between China and the United States How much relationship. ZTE previously violated the United States ban on Iran, North Korea and other countries export goods and technology ban.

As Huawei, a well-known private enterprise in China, although the development of domestic business in the United States will also be suppressed by all parties, it is impossible to completely block it. Because US companies also cooperate with Huawei, this can also solve many US issues. People's employment problems. Therefore, the incident of ZTE should be regarded as a case of punishment. Huawei will never become the next target of the United States.

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