Since the Sino-US trade friction began, a news night on April 16 has caused the Chinese information industry to pay close attention again. According to a Reuters report on April 16, the US Department of Commerce has banned US companies from selling components to ZTE. Effective immediately, for 7 years. US Department of Commerce’s Industry and Security Bureau official said in a conference call that the implementation of the ban was because ZTE violated the terms of the agreement reached in 2017. In March of last year, in the Federal Court of the United States of Texas, ZTE recognized Violation of the US sanctions ban and resale of U.S. equipment and technology. ZTE has paid a fine of US$890 million for this, and in addition it may face another fine of US$300 million. Part of the agreement is to require ZTE to participate in these banned trades. Employees took disciplinary measures. The U.S. Department of Commerce stated that ZTE officials had lied to punish these employees who were involved, but this is not the case. According to the agreement, ZTE should dismiss the four executives and punish another 35 employees for reducing bonuses or condemnation. The U.S. Department of Commerce officials stated that ZTE had fired four senior executives but did not take related measures against the other 35 employees. According to the ban, the United States State-owned enterprises must not sell the products (such as chipsets) stipulated in the ban directly or through other countries to ZTE. The Ministry of Commerce of the People's Republic of China responds closely and stands ready to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises. April 17, Ministry of Commerce of the People's Republic of China In an interview with the media, the spokesperson responded that the Chinese side noticed that the U.S. Department of Commerce has announced measures to control ZTE Corporation's exports. China has always required Chinese companies to abide by the laws and policies of the host country and conduct operations legally and in compliance with regulations. The company has carried out extensive trade and investment cooperation with hundreds of U.S. companies and contributed tens of thousands of jobs to the United States. We hope that the U.S. will properly deal with them according to regulations, and create a fair, equitable and stable legal and policy environment for enterprises. The Ministry of Commerce will pay close attention to the progress of the situation and stand ready to take necessary measures to safeguard the legitimate rights and interests of Chinese companies. Expert opinion 1: We must develop core technologies to prevent key moments from being stuck around the world's industrial chain. Shu Huaying, Professor, Beijing University of Posts and Telecommunications Said that at the beginning of Sino-U.S. trade frictions, It has been predicted that the problem is still very serious. Now the chips of ZTE's mobile phone chips and base station equipment are all imported from the United States. The operating system used by mobile phones is also Android. At present, the world's two most popular smart phone operating systems are controlled by the United States. Operating software and integrated circuits are the weaknesses of China’s information technology. Today, ICs import US$300 billion a year. China’s lack of these core technologies indicates that we have problems in corporate management. State-owned enterprises and SOEs mainly assess operational indicators. Private enterprises also rely on making money. Focusing on core technologies, we need to seriously solve these problems. Shu Huaying believes that the ZTE event is a great lesson for both companies and governments, and it also serves as a wake-up call for us to stand on our own feet. The forest of nations must develop its own core technology to avoid being stuck at the neck of the world's industrial chain at a critical time. 'Only one's own backskin is hard and it is hard to be held by other people's soft ribs.' A long time ago, the chip has been working hard, but this is a long-term accumulation process. It cannot be solved in a short period of time. It is a long-term strategy. Shu Huaying said: Regardless of whether the ZTE embargo will eventually reach a settlement, China must accept lessons. On the soft underbelly, private enterprises and state-owned enterprises must pay attention to development, and encourage private enterprises to participate. Second, domestic companies using chips include: Equipment enterprises must provide domestic chip companies with market development environment and provide opportunities for product iteration under the support of national policies. Third, companies must develop collaboratively in an integrated manner, and they should not only care about the immediate interests and disregard long-term strategic interests. Shu Huaying believes that China The development process in mobile communications shows that there is a long-term vision in the strategic market and technology. 'If China does not promote 3G TD-SCDMA, there will be no 4G TD-LTE today. At the time of developing 3G, some government was included. The department, some media and scholars, measured by immediate interests, said that the country has lost too much money. Without policy enforcement, it is impossible to bring about rapid development of 4G and 5G today. We must prevent the occurrence of things that are short-sighted.' Shu Huaying said The impact on ZTE, or whether ZTE will fall, is not the most important thing now. In 2016, the United States has imposed sanctions against ZTE. This time, it was not only the problem of a ZTE company, but also the pain of the nation and the country. Expert point of view 2: 'Unable to get on the battlefield, the negotiation table does not want it any more' Gu Wenjun believes that the highlights of the ZTE sanctions are the high level of dependence of the chip on the United States. It reflects the lack of 'core' in our national electronics industry. Chips are not just an industry link in China. Chips are more likely to become peacetime. The deadly 'weapons' without the smoke are the 'killing hearts'. The target of this sanction is ZTE, but 'Xiangzhuang's sword is intended for 'Peigong'. In fact, the entire Chinese throat is stuck. The other side has already had a sword. If we can't grow ourselves, it will be more than a ZTE company, but the entire industry. In the future, Gu Wenjun said that it is hard to beat iron. The key is to build an overall industrial ecosystem. Build a full-autonomy, The controllable chip supply chain is imminent. The Chinese chip industry must develop in all directions, whether it is a high-end master chip, such as a CPU or a network switch chip, or an FPGA chip. These are self-contained systems. A self-contained system is very important to the Chinese nation. Whether through endogenous or epitaxy, it needs to be done as quickly as possible. Because of the Chinese chip industry Weak and small, export sanctions, we can do very few things. However, there have been many overseas mergers and acquisitions projects. Although the mergers and acquisitions are subject to US companies, the market is in China. The Chinese Ministry of Commerce can actually do some restrictions and approvals. Restrictions. Gu Wenjun said that China's industry must stand up on its own. The seven-year ZTE sanctions period is still just seven years. Seven years have passed, according to Trump's high-profile behavior, and his imperative features. If Trump is re-elected successfully, and our own internal strength is not cultivated well, the seven-year itch will quickly become a pain for seven years, and it may end up being a seven-year battle. 'Unable to get on the battlefield, the negotiation table. We also don't want to get ', if we can't win the battle of competition, we can't negotiate to repress America's suppression and sanctions against us. But once there is a corresponding product line, the United States The country will relax export restrictions, and even product prices will fall sharply. Now it is necessary to dispel illusions, recognize the reality, and develop everything in the future. ZTE's own internal control should be improved. Other system manufacturers must also do a good job. Management and risk prevention and control should be more cautious and more careful with regard to the formulation of prevention strategies for Sino-US trade friction.
