China and the United States reached an agreement on resolving the issue of the ZTE | 7-year ban or lifting?

According to the “Wall Street Journal” report on the 21st, China and the United States reached an agreement on the path to solve the ZTE issue. The newspaper quoted informed sources as saying that relevant details are still being finalized. Once an agreement is reached, the Trump administration will cancel the prohibition. A ban on US companies selling components and software to ZTE. The person familiar with the matter also said that the lifting of the ban by the United States still requires a national security review.

According to a new financial report today, under the US ban, ZTE’s operations including production, sales, and after-sales operations have almost completely stagnated, but internally it has prepared plans for all possible future situations, including management. The restructuring plan, and once the “sale order” is lifted, how to immediately put into operation the 'rebuild' T0 program. Trump’s chief economic advisor, Larry Kudlow, also stated on Friday that ZTE Will have to make changes to its management and board of directors.

In fact, the U.S.’s reversal of the seven-year ban on ZTE’s seven-year ban has already been a sign. On May 13th, U.S. President Trump issued a tweet to consider the rapid recovery of ZTE’s business and said that “China and the United States have a good cooperation in trade.” ', 'Everything will be solved!'

Although the U.S. Congressman immediately rejected Trump's remarks and refused to relax any plans for ZTE's restrictions, he claimed that the telecommunications company is a security threat and vowed not to give up its restrictions on ZTE. But US Treasury Secretary Steven MnuchinThis week In an interview with CNBC, he said that the implementation of the ban does not mean that ZTE will go bankrupt. Any changes that are under consideration will support US national security. Machin also defended Trump's decision to keep ZTE alive.

and Larry Kudlow It insisted that ZTE would not be 'unpunished'. He said that ZTE had violated the law on several occasions after being warned.

Kudlow stated that ZTE's 'remedial measures' may include 'heavy fines, very strict compliance measures, new board of directors, new management team'.

Public information: The US Department of Commerce announced on April 16 that because ZTE failed to comply with the settlement agreement reached with the U.S. government, it will implement a technical ban on ZTE for a period of seven years up to 2025; during the period, U.S. companies are prohibited from selling to ZTE. Parts, Products, Software and Technology.

As we all know, the current core components of ZTE still rely on imports from the United States. Some media had previously dismantled the Axon M mobile phone and found that most of its core components come from the United States. ZTE’s core technology components could not be separated from the U.S. technology giant partners. Therefore, the United States The ban for ZTE is equivalent to a paper death penalty verdict. As the ZTE executives later said, the US ban on sales has already caused the company to fall into a state of shock and the business has stagnated.

Big country diplomacy, with no permanent friends or enemies, and only eternal interests, the follow-up progress of the ZTE Incident depends on the substantive results of the trade negotiations between China and the US. The officials said that Chinese Foreign Minister Wang Yi arrived in Washington this week and will continue to ZTE held talks. Commerce Secretary Wilbur Ross, who is responsible for the ZTE case, is scheduled to go to Beijing next week.

2016 GoodChinaBrand | ICP: 12011751 | China Exports