On April 16, local time, the U.S. Department of Commerce ordered the ban on U.S. companies exporting telecom parts and components to ZTE for a period of seven years. Under the background of Sino-U.S. trade frictions, the United States is very focused on ZTE's next major task. What is behind it?
This is the second time in the United States that ZTE has started
First look at the whole story.
In March 2017, the U.S. Department of Commerce decided to heavily punish ZTE for the reason that the U.S. claimed that ZTE had violated the U.S. export ban imposed on Iran. If export restrictions come into effect, U.S. component manufacturers and software companies will not be able to conduct business with ZTE, which will eventually lead to the cutting off of most of ZTE's supply chains.
Subsequently, ZTE and the U.S. government reached an agreement and agreed to pay a total fine of 892 million U.S. dollars and a suspended fine of 300 million U.S. dollars.
However, the U.S. Department of Commerce stated in its announcement issued on April 16, 2018 that ZTE had provided false statements to the U.S. Department of Commerce before. Specifically, the U.S. claimed that according to the previous settlement agreement, ZTE promised to dismiss 4 senior employees and punish 35 employees by reducing bonuses or penalties. However, ZTE dismissed only four senior employees and did not penalize or reduce the bonus of 35 employees.
What is the purpose of the U.S. "overkill?"
Looking at this process, people are unaware that punishment is too heavy? The US sanctioned ZTE in 2017 on the basis that the United States had determined that ZTE had violated the U.S. ban to export products to Iran. After Trump came to power, it once again became tough on Iran’s policy and saw Iran as the target of containment. But this time, the basis for the United States' accreditation was that ZTE had made a false statement in penalizing related personnel. The U.S. Secretary of Commerce’s Ross’s local time on Monday (April 16) claimed that “ZTE misled the (US) Department of Commerce. After the company not only failed to punish its employees and executives, but also rewarded them. This bad behavior can not be ignored ."
Once again, the U.S. has re-focused on ZTE, at least three points.
First, the sincerity of the United States in reducing its surplus is not enough. At present, one of the reasons why Trump repeatedly mentioned the trade friction between China and the United States is that the U.S. has had a large deficit with China. The Chinese side has repeatedly stated that it hopes that the United States will release its export of technology products to China. The United States blocked ZTE for this reason and refused to export telecom parts and components to ZTE. It shows that the United States still does not have much intention to reduce the deficit by expanding exports of technological products to China.
Second, the United States has blocked ZTE and suppressed high-tech companies in China. It also confirms that the United States provoked trade friction with China and its target was directed at China's manufacturing of 2025. The first of China's 2025 top 10 areas is a new generation of information technology industry. In terms of information and communication equipment, it is necessary to master key technologies such as new types of computing, high-speed interconnection, advanced storage, and systematic security assurance, and to thoroughly break through the 5th generation mobile communication (5G) technology, core routing switching technology, and ultra-high-speed high-capacity intelligent optical transmission technology. And other technologies. ZTE is one of China’s leading companies in this area.
Third, China's manufacturing of 2025 should be pushed harder. An important reason why the US Department of Commerce has blocked the impact of ZTE is that the components needed by ZTE cannot completely find alternatives to American companies. To put it bluntly, some products other than American companies cannot be produced by other companies. At this time, it was hard to counterattack when it was hit by a person's neck. In some key areas, domestic scientific and technological research and development should be more forceful to change the passive situation.
My Ministry of Commerce: Maintaining the Legal Rights and Interests of Chinese Enterprises
For all previous "penalties" of Chinese companies in the United States, Chinese government officials have repeatedly stated that they hope that the commercial cooperation between Chinese and American companies will not be disturbed by political factors.
A spokesman for the Ministry of Commerce responded on the 17th that China has taken note of the measures announced by the US Department of Commerce regarding ZTE’s export controls. China has always required Chinese enterprises to abide by the laws and policies of the host country in the course of overseas operations and to conduct business in a lawful and compliant manner. ZTE Corporation has conducted extensive trade and investment cooperation with hundreds of U.S. companies and contributed tens of thousands of jobs to the United States. It is hoped that the United States will properly handle the matter in accordance with regulations, and create a just, fair and stable legal and policy environment for the enterprise.
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