At the same time, the U.S. media also reported on related progress. Also on the 25th, a senior aide of U.S. Congressmen told CCTV reporters that the U.S. Department of Commerce released the ban on ZTE’s sales to the U.S. Congress. The U.S. Department of Commerce intends to lift restrictions on U.S. companies The ban on the sale of accessories and software products to ZTE Corporation.
A full 40 days! This was announced on April 16 by the U.S. government to impose sanctions on the embargo until the cumulative time of today. With the above conditions and progress being revealed, it also means that the ZTE embargo has made breakthrough progress. Coming soon to dawn.
However, analysing Trump's tweets, ZTE once again avoided the cost of life and death, including:
1. ZTE will be forced to completely replace its management and board of directors.
2, will make a higher security commitment.
3, but also must increase the United States parts procurement.
4. Pay a fine of 1.3 billion U.S. dollars.
According to analysts, strict enforcement of the above measures is equivalent to dismantling ZTE. However, this will be much better than no compromise. The specific content is actually worse than the 2016 penalty.
First, in the US ZTE sanctions case in 2016, its then senior management team was already in school. Shi Lirong, the president of ZTE Corporation, who was about to succeed Hou Weigui, did not wait until the reelection. As a result of the sanctions, the class was dropped. Afterwards, Zhao Xianming took over. Chairman and president positions.
However, in March 2017 in ZTE's new round of reelection, Yin Yimin was elected as the chairman of the latest session of ZTE, and Zhao Xianming continued as the president of ZTE.
From the perspective of performance, Yin Yimin, Zhao Xianming and other current senior executives have indeed led ZTE out of the first punishment in 2016. The financial report in the first quarter of 2018 showed that ZTE's performance has reached the best level in history. This punishment is also very likely. Yin Yimin, Zhao Xianming and others were forced to go to class, which brought a shadow to ZTE management.
Second, after the punishment in 2016, ZTE set up a compliance management committee and hired a third party to supervise. However, according to the report of the US CNBC website on the 24th, this time, the United States considers setting up a US compliance officer inside ZTE. Does ZTE comply with U.S. regulations?
If ZTE once agrees that US officials directly supervise the internal operations of ZTE, it will obviously be affected for a company with a background in state-owned enterprises.
Article 3. The first punishment two years ago did not involve forced sales. But this time the United States clearly stated that it requires the purchase of US parts to be purchased. From the perspective of the market economy, this will also affect the competitiveness of ZTE’s products. This is also true. Performance besides a Trump businessman.
Article IV. The total amount of fines two years ago was 1.19 billion U.S. dollars. However, the actual payment was 892 million U.S. dollars, and the remaining 300 million U.S. dollars in fines were suspended. This time the punishment was upgraded to 1.3 billion U.S. dollars, more than the previous one. If you ask for a one-off payment in full, you will have a considerable impact on ZTE's short-term operations.
In addition to the above four items, ZTE’s larger losses may lead to the loss of more important customers. According to previous industry claims, ZTE will only consume more than one month's worth of inventory and it will be depleted. At present, ZTE’s most critical time has also been reached.
Of course, fortunately, after ZTE escaped, it was more lessons, experiences, and reflections that should be left to the enterprise, the industry, and even the management. For enterprises, how to legally and legally become a compulsory course; for the industry, how Avoid the reoccurrence of a similar card neck incident and improve the industrial chain. For management, how to guide the development of the industry, use power and resources to form a social atmosphere in which the whole society respects intellectual property rights and actively participates in core technological innovation... This is the latest in ZTE’s case. The practical significance of value.