Last week, the U.S. Department of Commerce banned U.S. companies from selling all products to ZTE for a period of seven years and the ban took effect immediately. The reason was that ZTE had violated an earlier agreement and issued false statements on many occasions. ZTE's core components Rely on the United States, this move may cut off the supply chain of ZTE.
The source quoted an internal memorandum of ZTE on March 8 stating that Cheng Gang, Chief Compliance Officer and Chief Legal Officer of ZTE, was 'removed' but the memo did not give specific reasons.
In response to the US sanctions, the source said: 'When Cheng Gang was inexplicably removed from office, we already felt some problems but did not expect such a serious incident to occur.' The source added that now Employees are worried about their work.
According to informed sources, it is not yet clear whether Cheng Gang is still related to the company.
This memorandum report was first reported by the South China Morning Post.
ZTE is China's second largest telecommunications equipment manufacturer. The company acknowledged in March 2017 that it had illegally transferred US technology to countries including Iran and paid a fine of 890 million U.S. dollars in order to settle the case.
U.S. government officials said this week that as part of the agreement, ZTE, headquartered in Shenzhen, promised to lay off four senior employees and punish 35 other employees, either to reduce bonuses or to condemn them, but failed to fully pay these commitments. All actions.
This ban may be disastrous for ZTE. ZTE is the fourth-largest supplier of smart phones in the United States. It is estimated that one third of its key components, such as chip products, will rely on the United States.
Yesterday evening, ZTE Corporation issued an announcement, postponing the first quarterly financial report of 2018 originally scheduled for Thursday, saying that it needed time to assess the impact of US sanctions and postponed the disclosure to a later date fixed by the company.
At present, the company's stocks in Shenzhen and Hong Kong are still in suspension.
The U.S. sanctions on ZTE were followed up by the fine in March 2017. Analysts said that ZTE still has parts and components in stock, but if it fails to reach an agreement with the U.S. soon, it will affect its related businesses. It accounts for 10% of the global telecom equipment market, and accounts for approximately 30% of China's telecom equipment market.