Original title: ZTE incident or turning point Trump: informed the Ministry of Commerce
According to the evening news of sihai.com on May 13, US President trump tweeted: "we are providing ZTE with a way to quickly resume its business.". There are too many job losses in China. I have told the Ministry of Commerce to complete this work.
As we all know, the US Department of Commerce announced last month that it would prohibit us companies from selling products to ZTE within seven years, which nearly paralyzed ZTE's business and caused an uproar between China and the United States and around the world. The US side claimed that ZTE had "provided false information" and therefore imposed the above-mentioned absolute penalty. ZTE claimed that its failure to fulfill the contents of the agreement signed with the United States this time was due to ZTE's mistakes in process and human resources, and the company never deliberately lied to the government. Therefore, ZTE believes that the 'too harsh' ban imposed by the United States on ZTE is a very unfair punishment.
ZTE event or turning point Trump: fast recovery of ZTE business
The reason why the US side punished ZTE has been widely questioned, and there are a lot of international public opinions. This is an analysis of the card played by the us to cooperate with the trade war with China.
As a result of the ban imposed by the US government, ZTE's main business has ceased to operate. The ban is devastating for ZTE, which relies on US companies to produce a range of key products, including semiconductors for its smartphones and components used in its network devices. Last year, ZTE spent more than $2 billion on parts for US companies.
ZTE also said the ban means it will not be able to serve many network customers, including 100 million Indian users, 300 million Indonesian users, 29 million Italian users and 5800 wireless base stations in Austria.
It is expected that ZTE's ban will also bring considerable losses in terms of income and employment to these companies' major suppliers in the United States.
According to an April statement by California optical equipment maker neophotonics, the company, together with ZTE and its supply chain partners, expects annual revenue growth of 5%. The business with ZTE and its supply chain partners accounted for about 3% of the total revenue of neophotonics in 2017.
ZTE, the fourth largest mobile phone supplier in the U.S. market, said it has directly or indirectly supported about 130000 high-tech jobs in the United States.
No matter why the US side imposed that sanction at that time, President Trump's latest announcement is a welcome decision. ZTE uses a large number of components made in the United States, including chips, in its products, so it is difficult to find substitutes for all of them quickly. If Trump's latest statement is implemented soon, ZTE, with 80000 employees, will avoid shock.
It is worth noting that the resumption of supply to ZTE is not only beneficial to ZTE and its US suppliers, but also conducive to maintaining the US commercial reputation.