The next two weeks, the ZTE crisis will usher in the key time node

Micronet collection reported on May 11

According to Bloomberg, an e-mail addressed to the company’s top executives revealed that ZTE will describe the next two weeks as 'a critical window of time' and asked the company’s management to appease employees’ emotions.

The e-mail mentioned that the content includes that the company is currently trying to get out of the deadlock as soon as possible, 'Do not let inaccurate information and rumors disrupt people's hearts. Stick to your posts, inspire your team members, and reassure your team' etc.

From the point of view, the ZTE crisis has indeed ushered in the most crucial node. On the one hand, ZTE's inventory has been in short supply, and it has already begun to affect the normal business activities. On the other hand, Sino-US trade negotiations will also usher in key time points.

From the April 16 US Department of Commerce’s Bureau of Industry and Security (BIS) made the decision to activate ZTE’s refusal order, it has lasted 25 days as of today. According to previous industry comment, ZTE’s inventory is only enough to maintain one Months or so will be exhausted.

According to the announcement of ZTE on May 9, the refusal order has caused the current company's main business activities to no longer be possible. Some media reports that the current mobile phone business, ZTE official mall and Tmall flagship store page show 'website revision', can not Order.

In addition, from a business perspective, important customers are able to tolerate and wait for shorter and shorter time. As time goes on, they will be delayed further. Even if the ban is lifted in the future, it will cause irreversible losses to ZTE.

What ZTE can do now is to actively promote the early resolution of issues. On the evening of May 6, ZTE Corporation issued an announcement saying that the company has formally submitted an application for suspension of enforcement refusal orders to BIS, and submitted a response to the refusal order in accordance with the BIS guidelines. Materials. On May 10, according to the Wall Street Journal, a BIS spokesperson stated that the Bureau is evaluating ZTE's complaint and will immediately consider it.

However, some analysts believe that the key to the fate of ZTE is likely to be the next meeting of the Chinese and US delegations next week.

According to media reports, on May 7, local time, White House spokeswoman Sarah Sanders stated that Chinese Vice-Premier Liu He will visit the United States next week to continue consultations with U.S. economic and trade officials on economic and trade issues.

Saunders also said that both parties will work hard to achieve results that are beneficial to all parties. However, he did not disclose further details on the arrangements for the talks.

This is the latest progress since the Sino-U.S. talks in Beijing last week. After the U.S. delegation returned to the United States to report to President Trump, Trump rarely spoke on Twitter and the White House did not issue any statement on the contents of the report. Instead, it is directly announced that the two sides will discuss the issue again. This is of concern. As of now, the Chinese side has not officially responded to this. Analysts believe that, in a sense, the U.S. initiative to release the signal of continuing consultations is exactly the result of the Beijing talks. one.

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