Although the company is in a very difficult situation, the company's board of directors and management will do its utmost to protect the right of 80,000 employees to work legally, and the legal interests of 80,000 employees' families.
The U.S. Department of Commerce has made an activation refusal order prohibiting ZTE from buying, selling or engaging in any transactions involving goods, software or technology subject to U.S. export control regulations. In this regard, Yin Yimin, chairman of ZTE Corporation, stated that he will pay the largest amount. Efforts are made to fulfill the responsibilities of hundreds of millions of company end-consumer users of hundreds of carrier customers worldwide, including the United States, thousands of partners and suppliers.
Even if we get a refusal order, we will still meet the self-requirements of the world's leading export control compliance company.
A few days ago, the U.S. Department of Commerce, with ZTE, did not promptly deduct bonuses and did not issue disciplinary letters to certain employees involved in historical export control violations, and submitted them to the U.S. government on November 30, 2016 and July 20, 2017. In two of the letters, it made a false statement and made a decision to activate the refusal order and imposed the most stringent sanctions on ZTE.
ZTE responded quickly and expressed its firm opposition to the decision made by the US Department of Commerce. It resolutely opposes unfair and unreasonable penalties. It also opposes the politicization of trade issues and has a great impact on enterprises. ZTE also stressed that it will continue Adhering to an open, transparent and sincere attitude, continuing to communicate, solving problems in a legal and compliance manner, and doing our utmost to reduce the adverse effects of this matter.
Inside ZTE, Yin Yimin sent a letter to all employees, telling the company that it is actively communicating and making the utmost efforts to promote the resolution of the crisis. On the other hand, it also hopes that all employees will maintain a steady state of mind and stick to their respective goals. We hope that everyone will strengthen their confidence, unite and work together to overcome difficulties.
Yin Yimin said in the letter, 'Every employee does his own job and is the greatest support for the company.'
As we all know, on a global scale, the internationalization journey of a company is not simple, and it is often full of risks and challenges. Taking last year as an example, ZTE’s overseas revenue accounted for 43.06% of the company’s revenue, with European, American, and Oceanian markets accounting for corporate revenue. 25.1%. As a highly globalized high-tech enterprise in China, in the complex international situation, ZTE has invested a lot of energy in compliance governance in the past two years. All employees have participated and made tremendous efforts. .
According to ZTE's briefing, the principle of “export control compliance is the top priority” is adhered to. In respect of export control compliance, the ZTE Compliance Committee has established a global team of experienced export control compliance experts. The top international consulting team of the company has invested more than US$50 million in 2017 and plans to invest more resources in 2018. At the same time, it also organized compliance training for more than 65,000 employees.
Even if we get a refusal order today, we are still meeting the self-requirements of the world's first-rate export control compliance company. 'Yin Yimin said. In this case, the company discovered problems and took timely remedial measures. The compliance system is operating effectively.
Yin Yimin believes that in this incident, he ignored the hard work of ZTE in complying with the export control and compliance requirements, made huge investments and made great progress, as well as the initiative in problem discovery and handling. Before the relevant investigation has yet to conclude, the US Department of Commerce Industry It is extremely unfair and unacceptable to impose the most stringent sanctions against the Security Bureau. ZTE neither abandons its efforts to resolve problems through communication and dialogue, but also safeguards its legitimate rights and interests through all legally permitted means.
'We also need to increase our investment in technology to make our capabilities stronger'
Industry experts stated that it is generally acknowledged that in the global communications industry, ZTE Corporation has made great strides in its efforts to build and service the global communications network through more than a decade of dedication through independent innovation. , In order to narrow the information gap and benefit the people of the world, it plays an active role.
According to reports, ZTE currently has 30,000 R&D personnel. According to the public information released by the World Intellectual Property Organization, in 2017, ZTE Corporation occupied 2,965 PCT international patent applications for the second place in the PCT international patent applications for 8 consecutive years. The number of international patent applications ranks among the top three in the world. It is the only company in China that has won this honor for eight consecutive years.
As we all know, information technology is the most open industry in the world. Countries all over the world are developing information technology, leading to a global distribution of industry chains. No country can complete it on its own. Although the United States is the world leader in certain fields, the United States cannot exception.
Yin Yimin said that ZTE Corporation is leading the world in 5G wireless, core network, bearer, and terminal products. The company's major products use a large number of self-developed chips, but there are also a large number of general-purpose devices that are inevitably purchased. This is also globalized. Market development requirements and trends. At the same time, ZTE is also strengthening innovation. According to the “Chip Industry Patent Analysis and Patent Portfolio Quality Assessment” report issued by Questel, an internationally renowned patent search company, ZTE’s patent strength in IC (Integrated Circuit) chip field. As a leading company in China, it is the Chinese company that holds the most patents.
"Of course, we need to increase our investment in technology to make our capabilities stronger." Yin Yimin said that ZTE has always insisted on independent innovation of core technologies and strengthened R&D investment. In 2017, R&D investment was 12.96 billion yuan, accounting for 11.9 of revenue. %. Among them, we continue to increase investment in 5G R&D and related fields. We have established a 5G wireless R&D team with more than 4500 employees and invested RMB 3 billion each year for 5G wireless research and development. As of December 31, 2017, ZTE Corporation accumulated With more than 69,000 pieces of global patent assets, it has authorized more than 30,000 patent assets. Among them, 5G strategic layout patents exceed 1,700 worldwide.
There is enough evidence to prove that ZTE has always been a trustworthy and trustworthy enterprise, whether it is in African countries or developed countries in Europe and America. With regard to wireless, ZTE has obtained more than 320 LTE/EPC commercial contracts globally, entering 80% of the total. Countries investing in 4G networks. The number of Pre5G network deployments has grown rapidly. By the end of 2017, more than 110 networks have been deployed in more than 60 countries around the world.
Yin Yimin said that ZTE Corporation has always had the concept of creating and sharing value with customers and users. ZTE Corporation is a major contributor to the global 5G standard research and has joined almost all international mainstream standards organizations and advancing platforms. 3GPP has just concluded in Lisbon. At the RAN plenary session, ZTE Corporation and 29 other major manufacturers in the industry witnessed the freezing of the first version of 5G NR, and will work together with industry partners to promote 5G testing and commercial scale based on unified standards.
“With the development of internationalization, we will unremittingly safeguard the legitimate rights and interests of all employees and shareholders, and fulfill our responsibilities to customers, customers, partners and suppliers worldwide. ' Yin Yimin emphasized again.
ZTE employees spontaneously expressed their confidence in the company. An employee said, 'We believe that the company's management has the ability and wisdom to resolve this incident; we believe that 80,000 brothers and sisters will choose to persist in the company during difficult times, and The company is in the same place; we believe that many ZTE family members will silently stand behind the people of ZTE and give them the greatest support and encouragement; we believe that as Chairman Yin Yimin said, any path leading to a bright future will not be straightforward. The company's internationalization journey is also accompanied by twists and turns. In the way forward, we must strengthen our beliefs, believe in ourselves, and believe in the company. We believe that we will become stronger after experiencing the storm.
