On April 16, the U.S. Department of Commerce announced the activation of the refusal order to prohibit US companies from selling all products to ZTE for a period of 7 years. If ZTE could not find mediation measures in a short period of time, it would be in a dangerous situation. After all, ZTE is in danger. At the core of many businesses, it still needs the support of American manufacturers.
For the United States to limit the export of ZTE products, the Ministry of Commerce stated that it will pay close attention to the development of the situation and stands ready to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.
According to Gao Feng, the spokesperson of the Ministry of Commerce, the U.S. side’s actions have caused widespread market concerns about the U.S. trade and investment environment. The U.S. faces China, but ultimately it is the U.S. itself that will not only lose tens of thousands of jobs but also affect the U.S. Hundreds of American affiliates will shake the confidence of the international community in US investment and the stability of the business environment.
Gao Feng further pointed out that he hopes that the United States will not be smart, otherwise it will only bear fruit and not underestimate the determination of the Chinese side. If we want to adopt unilateralism, trade protectionist trade policies, and even do not hesitate to harm the interests of Chinese and US companies, we will try to curb the development of China. , Forcing China to make concessions, it is to use wrong calculations, and it can only bear its consequences. China’s determination and confidence to firmly defend the interests of the country and the people will not shake in the slightest, and it will wage a resolute struggle.
This is seen as a strong response from China to the recent US trade policy.
In addition, Qualcomm’s acquisition of NXP was only passed by the Ministry of Commerce of the People's Republic of China in the world. In the previous report, Jiwei.com pointed out that April 17 was the deadline for Qualcomm to apply for review for the second time. The Department took more time for approval to avoid the transaction being rejected. Qualcomm withdrew its application on the 16th and re-applied.
Today, the Ministry of Commerce confirmed the news. At the same time, it stated that Qualcomm’s proposed remedy program and preliminary feedback from market research conducted by the investigation agency concluded that Qualcomm’s solution is difficult to solve the relevant market competition issues.
Qualcomm’s acquisition of the NXP case was regarded as an important bargaining chip for the Chinese side. The Ministry of Commerce did not respond directly. It only stated that the transaction would have a far-reaching impact in the industry and could be detrimental to market competition. The investigation authority needed to spend a lot of money. The timing of the investigation, evidence collection and analysis. From the end of March, the United States initiated the trade war with China. The two sides have been discussing the move. The United States first announced that it will impose tariffs on imports from China, and then the Chinese announced an Imported products were imposed with tariffs. At the time of the deadline for the approval of the Qualcomm NXP case, the United States introduced another ban on ZTE.
The U.S. measures are more of an act of seizing the initiative in the negotiations. The purpose is to force the Ministry of Commerce to submit a contract to acquire NXP's transactions through Qualcomm.
If ZTE is the US's bargaining chip, from the information released by the Ministry of Commerce today, Qualcomm is undoubtedly China's bargaining chip. Today's Ministry of Commerce’s hard-line position is a powerful counterattack. However, it is important that both parties need to return early. At the negotiating table, ZTE is at greater risk because it compares with Qualcomm.
Wang Yanhui, the secretary general of China Mobile, said that any global hegemony will make every effort to organize the rise of a new hegemony. This has nothing to do with ideology. It is the same for both China and Japan. The future US review of Chinese acquisitions is also It will be more and more strict.