On April 19, according to news reporters from the sources, after the US activated the refusal order, ZTE executives took advantage of the mediation, and the work of the rest of the employees remained normal. However, the company has been strengthening compliance management, requiring each employee to re Learn European and American laws, regulations, anti-bribery and other knowledge, to participate in the compliance test to achieve 100 points (out of full scale) to pass.
When responding to investors' inquiries, the staff of the ZTE Securities Representative Office stated that the company is actively seeking solutions. If there is progress, it will be disclosed externally. 'There will certainly be some impact on the company's business, but try to overcome it.'
On April 16, the U.S. Department of Commerce announced that due to ZTE's failure to perform some of the agreements in the settlement agreement, the U.S. Department of Commerce will ban U.S. companies from selling components to ZTE. The export ban will take effect immediately with a validity period of up to 7 years. .
Since ZTE’s main core components in its main business are mainly dependent on suppliers from the United States, the penalties imposed by the US will have a major blow to the company.
One of ZTE's suppliers, Intel Corp., stated on April 18: 'We have already been aware of the US Department of Commerce's orders and will comply with the requirements of relevant laws and regulations.' Intel's relevant personnel emphasized that this is a global caliber.
However, the other two suppliers of Qualcomm, Qualcomm and Microsoft did not respond.
On the morning of April 19, China Securities Network reported that ZTE's legal department is conducting intense translation and argumentation against the US ban. It is reported that the U.S. Department of Commerce’s ban on ZTE involves a lot of professional legal provisions, and the translation work is tedious.
According to sources, ZTE has started to confirm each production process that is currently under way. The supply chain department or other activities do not involve the production of American products. Some sources in the media quoted ZTE's sources as saying that ZTE is making a move to the United States. The Ministry of Commerce applied for interpretive guidance on the prohibition of part of the password.
It is understood that since the US Department of Commerce announced the ban, ZTE has sent two internal letters to employees, and the second specifically emphasized the company's compliance management.
According to a previous report from CICC: ZTE has 1 to 2 months inventory of spare parts. If ZTE fails to reach a settlement within a month or two, it will affect the normal production and sales of communications equipment and mobile phones.