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3 days ago

ZTE Corporation

Statement of ZTE Corporation on Activation of the “Denial Order” by U.S. Department of Commerce

Since April 2016, ZTE Corporation (hereinafter referred to as “ZTE”) has continuously reflected on lessons from its past experience in Export Control Compliance and has attached great importance to Export Control Compliance. Within ZTE, compliance is regarded as the foundation and bottom-line of the Company’s operation.

ZTE has established a Compliance Committee led directly by its CEO; built a global team of experienced export control compliance experts; engaged several world-class counsels and consultants to provide professional guidance in order to establish and optimize ZTE’s export control compliance structure, system and procedure; introduced and implemented the SAP Global Trade System (GTS); organized compliance training covering over 65,000 employees; cooperated comprehensively with the independent Monitor designated by U.S. Government to ensure the Monitor’s real-time and transparent monitoring over ZTE’s implementation of the relevant Agreements with U.S. Government and applicable export control compliance requirements, and provided over 132,000 pages of documents. In 2017 alone, ZTE invested over USD 50 million in its export control compliance program and is planning to invest more resources in 2018.

However, the Bureau of Industry and Security (hereinafter referred to as “BIS”) activated the Suspended Denial Order on 16 April 2018, on the ground that ZTE did not timely reduce bonus of and issue letters of reprimand to certain employees involved in past violation of export control and made false statements in correspondence with the U.S. Government.

ZTE has been working diligently on Export Control Compliance program and has invested tremendous resources in export compliance and has made significant progress since 2016. It is unacceptable that BIS insists on unfairly imposing the most severe penalty on ZTE even before the completion of investigation of facts, ignoring the continuous diligent work of ZTE and the progress we have made on export compliance and disregarding the fact that (1) ZTE self-identified the issues in the correspondence and self-reported by ZTE immediately; (2) the Company has taken measures against the employees who might have been responsible for this incident; (3) corrective measures has been taken immediately; and (4) a prestigious U.S. law firm has been engaged to conduct independent investigation.

The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of U.S. companies.

In any case, ZTE will not give up its efforts to resolve the issue through communication, and we are also determined, if necessary, to take judicial measures to protect the legal rights and interests of our Company, our employees and our shareholders, and to fulfill obligations and take responsibilities to our global customers, end-users, partners and suppliers.

As a global company originating in China, ZTE will unite all of its employees as one with full confidence to work together taking best efforts to facilitate a final resolution.
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Statement of ZTE Corporation on Activation of the “Denial Order” by U.S. Department of Commerce

Since April 2016, ZTE Corporation (hereinafter referred to as “ZTE”) has continuously reflected on lessons from its past experience in Export Control Compliance and has attached great importance to Export Control Compliance. Within ZTE, compliance is regarded as the foundation and bottom-line of the Company’s operation.

ZTE has established a Compliance Committee led directly by its CEO; built a global team of experienced export control compliance experts; engaged several world-class counsels and consultants to provide professional guidance in order to establish and optimize ZTE’s export control compliance structure, system and procedure; introduced and implemented the SAP Global Trade System (GTS); organized compliance training covering over 65,000 employees; cooperated comprehensively with the independent Monitor designated by U.S. Government to ensure the Monitor’s real-time and transparent monitoring over ZTE’s implementation of the relevant Agreements with U.S. Government and applicable export control compliance requirements, and provided over 132,000 pages of documents. In 2017 alone, ZTE invested over USD 50 million in its export control compliance program and is planning to invest more resources in 2018.

However, the Bureau of Industry and Security (hereinafter referred to as “BIS”) activated the Suspended Denial Order on 16 April 2018, on the ground that ZTE did not timely reduce bonus of and issue letters of reprimand to certain employees involved in past violation of export control and made false statements in correspondence with the U.S. Government.

ZTE has been working diligently on Export Control Compliance program and has invested tremendous resources in export compliance and has made significant progress since 2016. It is unacceptable that BIS insists on unfairly imposing the most severe penalty on ZTE even before the completion of investigation of facts, ignoring the continuous diligent work of ZTE and the progress we have made on export compliance and disregarding the fact that (1) ZTE self-identified the issues in the correspondence and self-reported by ZTE immediately; (2) the Company has taken measures against the employees who might have been responsible for this incident; (3) corrective measures has been taken immediately; and (4) a prestigious U.S. law firm has been engaged to conduct independent investigation.

The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of U.S. companies.

In any case, ZTE will not give up its efforts to resolve the issue through communication, and we are also determined, if necessary, to take judicial measures to protect the legal rights and interests of our Company, our employees and our shareholders, and to fulfill obligations and take responsibilities to our global customers, end-users, partners and suppliers.

As a global company originating in China, ZTE will unite all of its employees as one with full confidence to work together taking best efforts to facilitate a final resolution.

 

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ZTE will have to take serious steps against these sanctions. My support is with ZTE

Keep trying don't give up Success is not a easy thing Be the one let's do it Be the one its time to do it

By standing together and being a loyal to the company yes we will pass it successfully !! Then everything will be a history.

We will fight together against biased actions!

Us take biased decisions to play dirty role, due to there trade war with china,

Nice to see ZTE continuing with a problem solving approach, Best of Luck ZTE! 👍

Fighting, ZTE

As a ZTE consumer I stand with the company and willing to support them in this fight .

Bureau of Industry and Security seems to be persecuting ZTE for some reason, could it be they have no other cases other than this ?

I stand with you ZTE, together we will overcome

#KeepOnFightingZTE We are waiting what will come.....hopefully an Axon 9.....

Such an embarrassment from you (ZTE), ..... but let's fight, and do not lie down, ZTE is a Great Family, including the owners of your products .... So, fight!

We are warriors.

Stay strong ZTE!

I'm hpy to join with coming up project with ZTE it was awesome team

let solve together. we are one team, one dream, one target. everything will be ok. fighting!!!!

I'm sure Samsung and Apple wouldn't have anything to do with this, 🤔

As ex"s ZTE employee....support to #keeponfightzte

We are all standing with ZTE one team one goal

Suppprt for ZTE. We'll fight it out together

I have a ZTE but nobody in Congress does

We support ZTE always and stand with ZTE.

As ZTE employee I am supporting them

中兴去死吧,这种流氓无赖企业早该破产了,为了蝇头小利帮伊朗建404,被封杀了活该,还在这边吧装委屈,装你妈逼,当时造墙那会怎么没想到后果?没事别寂寞了,毛泽东和方滨兴会在地狱陪着你们的

Keep fighting ZTE, Stay Strong

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1 week ago

ZTE Corporation

We are honored to be named Chair of IEEE802.11 Next-Gen V2X Study Group. Learn more on how we'll facilitate researches and standardization process on #vehicle-to-everything. buff.ly/2Hmr7Dm ... See MoreSee Less

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