For ZTE, losing the supply of US chips and services will seriously affect the normal operation of ZTE. On April 20, Yin Yimin, chairman of ZTE Corporation, pointed out at the press conference that sanctions have allowed the company to immediately enter a state of shock. ZTE issued internal letters and statements, stating that the U.S. Department of Commerce’s accusation against ZTE was “extremely unfair and never accepted”.
Since ZTE's penalties are at a critical period in the trade friction between China and the United States, there has never been a severe punishment that has triggered a strong shock from all parties. At the same time, ZTE’s penalties have also been interpreted as part of the trade friction between China and the United States, and the focus behind competition is the two countries’ initiative in the technology of 5G and even the future.
Under the continuous promotion of Sino-U.S. trade, on June 6, the U.S. Department of Commerce stated that it has reached an agreement with ZTE and will conditionally lift the 7-year ban on ZTE's procurement from U.S. suppliers. The agreement includes a fine of 1 billion U.S. dollars for ZTE and an additional 400 million U.S. dollars in custody to prevent any future violations. As part of the agreement, ZTE also promised to replace its board of directors and senior management team within 30 days. The United States will dispatch an executive team to enter ZTE Corporation.