On Sunday morning in U.S. local time, U.S. President Trump issued a statement on Twitter stating that he is working with Chinese President Xi Jinping to provide ZTE with a way to quickly resume business. Trump said in a tweet that China has too Loss of more jobs, 'I have told the Ministry of Commerce to complete this work as soon as possible'.
The US Department of Commerce announced last month that it has prohibited US companies from exporting telecom parts and components to ZTE for a period of seven years because of suspected illegal shipments of U.S. goods and technology to Iran. After the U.S. Department of Commerce banned U.S. companies from selling chips to ZTE, ZTE Last Wednesday announced the suspension of its main business.
ZTE, headquartered in Shenzhen, Guangdong Province, currently has more than 80,000 employees. If you count the industry chain, hundreds of thousands of channel providers will be affected.
As one of the world's largest manufacturers of telecommunications equipment, ZTE relies on US companies such as Qualcomm and Intel to provide components. ZTE's products, including smartphones and telecommunications network equipment, contain approximately 25% to 30% of components from US companies.
However, the U.S. Department of Commerce’s move also undermined the interests of ZTE's U.S. suppliers. According to Reuters, ZTE paid US$2.3 billion last year to over 200 U.S. suppliers, including 100 million to Qualcomm, Broadcom and Intel respectively. Dollars.
ZTE issued a statement last Wednesday saying that it is actively communicating with relevant U.S. government departments to amend or reverse the ban of the Ministry of Commerce. ZTE also said that the U.S. government’s sales ban on ZTE will seriously jeopardize the company’s survival. Extremely unfair.
At the same time, the Chinese Ministry of Commerce stated that China is ready to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.
At present, US-China trade relations are still tense. Trump proposed to impose tariffs on Chinese goods of 60 billion U.S. dollars in March of this year. In addition, the U.S. Department of Defense ordered military departments to stop selling ZTE mobile phones in April. The Federal Communications Commission recently banned U.S. Internet providers. Use federal funds to purchase equipment produced by Chinese companies such as Huawei.
In response, ZTE issued a statement on April 20 stating that since April 2016, the company has learned lessons from the past, attached great importance to the relevant provisions of export control, fully coordinated with the supervision of the US, and invested tens of millions of dollars in Due to the implementation of export control regulations, the recent ban imposed by the U.S. Department of Commerce is unfair and unacceptable.
At a press conference, the Chinese Ministry of Commerce spokesman Gao Feng subsequently commented that ZTE Corporation was sanctioned by the United States, saying that China closely monitors developments and takes action at any time to safeguard the legitimate rights and interests of Chinese companies. He also said that the behavior of the United States will affect hundreds. Thousands of American affiliates will eventually harm the United States itself.