On the evening of April 16, the U.S. Department of Commerce issued an announcement stating that US companies are prohibited from selling components and parts to Zhongxing, with a time limit of 7 years. In addition, the U.S. Department of Commerce’s Bureau of Industry and Security also imposed a fine of 300 million U.S. dollars on ZTE. This part of the penalty can be suspended, mainly depending on the implementation of the agreement in the next seven years. In response, the Chinese Ministry of Commerce stated that it is ready to take necessary measures to safeguard the rights and interests of Chinese enterprises.
On the morning of April 17, after the U.S. Department of Commerce activated ZTE's refusal order, ZTE said that the company attached great importance and established the Crisis Response Working Group at the first time. At present, we are analyzing and formulating countermeasures in various fields, and are working hard to meet the crisis.
In recent years, with the rise of China's telecommunications companies, various obstacles have also been encountered in the company's journey to the sea. This matter dates back to last year.
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 relevant US export ban. 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.
ZTE A-share H-share suspension
This move by the U.S. government is undoubtedly a huge blow to ZTE.
Because of the “raid strike” of the US, on April 17, the Shenzhen Stock Exchange announced that due to a major event that ZTE Corporation may have a significant impact on the stock price and did not disclose it publicly, it will be suspended from the opening of the market on April 17. Resumption of trading after publication of related announcements. At the same time, ZTE’s H shares on the Hong Kong Stock Exchange were also suspended.
The ZTE statement stated that it has been informed that the U.S. Department of Commerce has refused to activate the company. The company is fully evaluating the possible impact of this event on the company and actively communicating with and responding to various aspects.
The Yangcheng Evening News reporter learned that ZTE is the world's leading provider of integrated communications solutions, providing innovative technologies and product solutions for telecom operators and corporate network customers in more than 160 countries and regions around the world, and is in the process of 5G R&D. Leading level.
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