Trump stated in his Twitter that (due to the failure of ZTE's business to operate normally) China has had too many job losses and has informed the Ministry of Commerce to complete this work as soon as possible. In response, a spokesman for China’s Ministry of Foreign Affairs, Lu Wei today. He said that the Chinese side greatly appreciates the positive attitude of the US side to the issue of ZTE Corporation and is maintaining close communication with the US on the implementation of specific details. With regard to some specific issues that the United States is concerned about, the two sides also maintain close communication.
At the same time, at the invitation of the U.S. government, Vice Premier Liu He will visit the United States from May 15 to 19 and continue consultations with the U.S. economic team on bilateral economic and trade issues. Lu Hao stressed that China is willing to work with the U.S. side. Promote positive and constructive results in the upcoming round of consultations on economic and trade issues.
From the April 16 US Department of Commerce’s Bureau of Industry and Security (BIS) made the decision to activate the ZTE refusal order, it has lasted 28 days. According to the industry’s previous assertion, ZTE’s inventory is only enough to maintain one Over a month or so, it will be depleted. In addition, from a commercial perspective, important customers will be able to tolerate and wait for shorter and shorter periods of time. As time passes, further delays will result in the suspension of future bans on ZTE. Irreversible loss.
If ZTE can resume normal operations within a month, then the company’s losses are expected to be at the level of 1 to 1.5 months of revenue, but there will be no case of existing customers switching to other suppliers. In view of the impact of this incident on confidence, It may be more difficult for ZTE to finalize more operator customers abroad in the next 12 months.
Foreign media predicted that ZTE's more likely outcome is that the U.S. Department of Commerce will temporarily lift the export ban, but will also conduct further investigations and negotiations. This may mean that ZTE will also face more penalties and stricter inspections. One possible outcome is that the U.S. Department of Commerce concluded that ZTE’s problems are inadvertent and not a major problem. Therefore, the export ban will be lifted and there will be no penalty. It will only review ZTE’s internal compliance. .
China Merchants Communications believes that the United States is likely to resume ZTE’s procurement in the United States in the form of a moratorium on the United States. The final solution has yet to be determined, fines or the maximum possible options. The 5G standard voice and intellectual property rights or negotiating focus. Analysts said that ICT Originally, it was the industry with the most closely integrated globalization and division of work. After being punished by the embargo, ZTE’s business was greatly affected, and some production lines were even shut down. This also affected the global industrial chain, including some upstream U.S. companies. ZTE procurement is not only reasonable, but also the trend of the times. If we can resume purchasing in the United States in a short period of time, the company's product line will have the ability to quickly recover, and the impact on the industry chain and the company is expected to shrink to a lower limit.
It is worth noting that the US has just released the "goodwill" of ZTE, and the Chinese Ministry of Commerce has subsequently stated that it will expedite the review of mergers and acquisitions between Qualcomm and NXP and restore the stagnation of the previous review due to Sino-US trade disputes. This game is self-evident.
In the end, whether ZTE can emerge from the predicament and usher in life, this time Liu He’s visit to the United States is particularly critical.
Wang Yanhui, secretary general of China Mobile, said that whether ZTE is released by the US Department of Commerce or not, the lesson for Chinese companies is that it is important to enter the international market for compliance issues. If ZTE can be released by the United States, it is estimated that Qualcomm’s acquisition of NXP will be marketed by the national market in the near future. Supervised by the General Administration of Supervision.