In response to the company’s sanctions imposed by the US Department of Commerce, ZTE issued an internal employee letter called “Strengthening Confidence and Shortage of Time to Solve Problems” late last night. ZTE stated that it has formally submitted an application to suspend the execution of the refusal order to the BIS and submitted supplementary materials according to the BIS guidelines.
The U.S. Department of Commerce announced on April 16th, E.T. that it will ban US companies from selling components, goods, software and technology to ZTE for seven years until March 13, 2025. In this regard, ZTE responded quickly and expressed its firm opposition to the decision made by the US Department of Commerce, resolutely opposed unfair and unreasonable penalties, and even opposed the politicization of trade issues, which had a great impact on enterprises.
At the press conference held on April 20, Yin Yimin, chairman of ZTE Corporation, said that the US ban would have a significant impact on the company, resulting in the interests of all employees, operators, customers, and consumers around the world. Direct damage. In a previous statement, ZTE also responded that the sanctions were unfair and unacceptable.
ZTE said: "We will not give up our efforts to solve problems through communication and dialogue, and we will use all means permitted by law to safeguard our legitimate rights and interests." "ZTE also said that it will continue to maintain close communication with all parties and do its utmost to solve the problem in a shorter time."
The following are the main contents of ZTE's internal letter:
"Strengthening Confidence and Trying to Solve the Problem in Less Time"
After learning of the US refusal to activate the company on April 16th, as a global company that has grown up in China, the company has always been in line with the national strategy. It has consistently adhered to the guidance of the Chinese government and has taken active actions to advance the issue as quickly as possible.
At the same time, since the incident occurred, the company actively communicated with the relevant US government agencies. The company has formally submitted an application for suspension of execution refusal order to BIS and submitted supplementary materials according to BIS guidelines. The company will not give up its efforts to solve problems through communication and dialogue, but will also use all legal means to protect its own legitimate rights and interests.
The company always regards compliance as the cornerstone of its strategic development. Upon learning of the refusal order, the company issued a code of conduct to be followed in the event of an activation denial order, strictly enforced the EAR controls, and required all employees to firmly adhere to the compliance baseline. The company conscientiously rethought and learned lessons, strengthened compliance internal control, and practiced the standards of the world's first-rate export control compliance companies.
The company has always insisted on independent innovation of core technologies and strengthened R&D investment. In 2017, R&D investment ranked first among domestic A-share listed technology companies. According to the company's first quarter report, without considering the impact of the refusal order, the company achieved operating revenue of RMB 28.88 billion, an increase of 12.18% year-on-year, and net profit of RMB 1.687 billion, an increase of 39.01% year-on-year.
After the incident, nearly 80,000 employees of the company held their positions and expressed their best support to the company through practical actions. At the same time, customers, partners, suppliers and so on across the globe also express their understanding and support for the company's current difficulties in different ways. These are all sources of confidence in our firm belief in doing our utmost to relieve the crisis.
The company will continue to maintain close communication with all parties and do its best to solve the problem in a shorter time.
The long road also has a long destination. The night is long and there is an end. Let us strengthen our confidence and hope to welcome the arrival of the dawn!