On June 19th, according to CNN, the US Senate voted to pass the annual National Defense Authorization Act (NDAA) amendments on the evening of June 18, including the restoration of ZTE sanctions and the ban on US government agencies. 3. Additional terms for the purchase or lease of ZTE and Huawei equipment, which antagonized the Trump administration's lifting of the ban.
According to the news, on the morning of June 19, A shares of ZTE Corporation (000063) again fell below the threshold of 20.54 yuan, recording a four-plate. As for Hong Kong stocks, ZTE Corporation (00763.HK) fell more than 12%, and has fallen more than once since the resumption of trading. 50%.
On April 16 this year, ZTE was ordered to “shut up”, and the US Department of Commerce announced that it would ban US companies from selling components, merchandise, software and technology to ZTE for the next seven years until March 13, 2025.
On June 7, after several consultations between China and the United States, Wrestling, US Secretary of Commerce Ross announced that he had reached a settlement agreement with ZTE.
On June 12, ZTE Corporation announced that ZTE and its wholly-owned subsidiary ZTE Kangxun have entered into an “Alternative Settlement Agreement” with the Bureau of Industry and Security of the US Department of Commerce (hereinafter referred to as 'BIS') in place of ZTE Corporation’s The "Reconciliation Agreement" reached with BIS in March 2017.
The new settlement agreement shows that ZTE must pay a total of 1.4 billion U.S. dollars in civil fines to BIS within three months. ZTE had previously paid a fine of 890 million U.S. dollars, and the cumulative amount of tickets thus far reached 2.29 billion U.S. dollars. Only in ZTE The BIS will terminate the activation refusal order after the communication has paid all of the US$1.4 billion, and will remove ZTE from the List of Forbidden Exporters.
At the same time, ZTE must be June 8, 2018 BIS will replace all members of the board of directors of the company and ZTE Kangxun within 30 days after the issuance of the “Alternative Order on ZTE Corporation” (hereinafter referred to as the "8 June 2018 Order"). ZTE will cooperate with the company and the current position of ZTE Kangxun. Senior Vice President and all senior leaders above, and any participation, supervising the Proposed Allegation letter issued by BIS in March 2017 or the refusal of the act or other acts of the kind involved in the act on April 15, 2018 Management or senior staff rescinds the contract. ZTE and its subsidiaries or affiliates may no longer employ such personnel.
In addition, BIS will initiate a new refusal order for a period of ten years (hereinafter referred to as the 'monitoring period') since its order of June 8, 2018 (including the 'monitoring period'), including restricting and prohibiting ZTE’s application, obtaining or using any licenses, and licensing exceptions. Or export control documents, and in any way engage in any transaction involving any item, software, or technology subject to the US Export Administration Regulations.
In addition, ZTE needs to hire an independent special compliance coordinator (hereinafter referred to as the “coordinator”) at its own expense to coordinate, supervise, evaluate and report that ZTE Corporation and its global subsidiaries or affiliates comply with the 1979 US Export Administration Act, Regulations, Agreements and Orders as of June 8, 2018.
At that time, industry analysts said that although ZTE 'lived', but the cost is very painful. Even if the agreement with the BIS, in exchange for only a 'probation' rather than a complete cancellation of the refusal. A new decade of rejection The order will continue to be the lingering haze of ZTE's head. The existence of 'coordinators' means that ZTE may also be subject to US supervision.
According to CNN reports, many US congressmen have repeatedly criticized Trump's “rescue” of ZTE. These congressmen believe that the essence of the ZTE issue is the US national security issue, but it was treated as a Trump administration in the Sino-U.S. trade negotiations. Bargaining 'chips'.
As for the direction of the 'ZTE Incident', CNN commented that it depends on how the Trump administration's struggle with the Congress will proceed. It is reported that Trump will meet with relevant lawmakers on the 20th to further develop the relevant provisions of ZTE. Consultation and discussion.