In the morning, the Wall Street Journal’s Chinese website reported that sources said that the United States and China reached an agreement on resolving ZTE-related disputes. The United States will cancel the ZTE sales ban and maintain its business in accordance with the discussion agreement. Sources also stated that ZTE will Was asked to adjust the management and board of directors on a large scale.
However, informed sources said that the United States to lift the ban still need to pass the national security audit.
Just now, when responding to each reporter, ZTE stated that the United States will cancel the ZTE sales ban. The news is true.
According to U.S. media reports, U.S. Secretary of Commerce Ross may travel to China next week.
On May 13, U.S. President Trump issued a tweet saying: 'Communicating is providing ZTE with a way to quickly restore business. (Because ZTE's business cannot be carried out normally.) There are too many job losses in China. I have Inform the Ministry of Commerce to complete this work as soon as possible. '
However, in recent days, according to reports from U.S. media, the United States will not easily let go of ZTE, and even if it is lifted, it will have to pay a high price.
Recently, White House economic consultant Larry Kudlow said in an interview with CNBC: 'They (ZTE) violated the law several times after being warned.'
He also stated that 'China's request for mitigation of punishment is not to say that there will be no penalty, or that there will be heavy penalties.' 'Zhongxing's remedies may include: heavy fines, very strict compliance measures, new board of directors, and new management. Team. ' Kudlow said.
In fact, in 2016, when the U.S. sanctions against ZTE were imposed on the United States, its then senior management team had already taken classes. Shi Lirong, the president of ZTE Corporation, who was about to succeed Hou Weigui, had not yet waited until the re-election and was dropped off because of the sanctions. At that time, Zhao Xianming took over as chairman and President position.
However, in March 2017 in ZTE's new round of re-election, Yin Yimin was elected as the chairman of the latest session of ZTE, and Zhao Xianming will continue to serve as ZTE’s president.
In addition to core management changes, in the first sanctions in 2016, the total amount of fines imposed by the United States against ZTE was as high as 1.19 billion U.S. dollars, of which one-time payment of 892 million U.S. dollars and the remaining 300 million U.S. dollars in fines were suspended. ZTE has fulfilled the agreement with BIS within the seven-year hold period, then the fine will be waived.
At present, it seems that the probability of the remaining 300 million U.S. dollars in fines is almost 100%. The current focus is whether it will impose additional fines. Will it really affect the current management team and the board of directors?
From April 16th, the Bureau of Industry and Security (BIS) of the US Department of Commerce calculated that the decision to activate ZTE’s refusal order had lasted for more than 30 days. According to the industry’s previous assertion, ZTE can only maintain enough The inventory of the month will be exhausted. At present, it is also the most critical moment for ZTE.