ZTE is likely to change its fate through case-reporting and new rounds of Sino-US consultations.
A spokesman for the Ministry of Commerce said on April 22 that US Treasury Secretary Nouchin said that he would consider negotiating with China, and China welcomes this.
According to another report, on the evening of April 20th, US local time, on the second day of ZTE’s announcement, a senior US Department of Commerce official said on Friday that the agency had approved ZTE’s request for more materials.
This means that ZTE is likely to start to change its fate through case-reported re-judgment and a new round of Sino-US consultations.
The US Department of Commerce said that ZTE had no administrative appeal under the agency regulations, but the US Department of Commerce agreed to collect evidence through informal procedures in the near future.
On April 16, the United States announced sanctions against ZTE, and the US Department of Commerce activated a refusal order prohibiting US companies from selling components to ZTE over the next seven years.
Since about 20% to 30% of ZTE's components are supplied by US-based manufacturers, most of the commonly used components such as high-speed ADC/DAC, modulator, high-performance phase-locked loop, and IF VGA rely on products. Supplyed by foreign chip manufacturers, it is temporarily unable to obtain equivalent substitutes in China. Therefore, once the United States banned the purchase of ZTE, it is equivalent to holding the throat of ZTE Corporation.
In addition to the procurement of spare parts, ZTE Corporation also has close cooperation with American companies in the research and development of mobile phone chips and 5G technology. For example, the ongoing 5G commercial test is closely related to companies such as Qualcomm and Intel.
From a short-term perspective, whether it is ZTE or the overall trade situation between China and the United States, this is a signal to a benign outcome. If the situation develops, China and the United States will suffer both losses. Many industry insiders analyzed the "Financial" reporters. There are many American companies operating in China, and China has many paths to counterattack. However, once the situation expands, it will seriously affect and change the existing pattern of high-tech industries in China and the United States.
After the US announced a ban on ZTE, the National Cyber ​​Security Center issued a new warning that the telecommunications industry should not use equipment and services from ZTE. The Australian military also refused to purchase Huawei and ZTE handsets after the United States. An Australian Defense Ministry spokesperson said that previously purchased Chinese company products are still in use for a while, but will be cancelled after a while.
A number of domestic industry and policy people told reporters that if the Sino-US trade war is further escalated, trade and cooperation restrictions are likely to extend to all related companies associated with ZTE, and even to all companies in the industry.
The internal research report file of the SASAC obtained by the reporter shows that outside ZTE, the next one that is targeted is likely to be Huawei. Huawei has already talked about the cooperation of operators before, and it is likely to be stopped by the US government. At the beginning of this year, AT&T and Verizon, the major mobile operators in the United States, announced that they would abandon their cooperation with Huawei on smartphones.
"If the US government strikes a series of head companies in China's technology sector, the situation will worsen." A senior observer in the information and communication field analyzed the reporter.
In the context of the Sino-US trade war, ZTE’s sanctions have triggered the attention of the whole society. At present, there are two main types of public opinion: one is to accuse the United States of imposing a technical blockade on China, thereby increasing the bargaining power of trade wars; the second is that this incident is a catalyst for China's high-tech basic research, especially the chip industry to become localized.
The internal research report document of the above-mentioned SASAC suggests that no matter what the ZTE incident is going, China should strengthen key industries and key technologies in the next stage.
The report believes that historical experience shows that core technologies and core competencies cannot be bought, and true core competitiveness needs to be nurtured and innovated. In the most difficult period, China independently developed two bombs and one star. After that, the ultra-high voltage transmission, the new nuclear power technology, and the high-speed rail technology were all completed in a relatively short period of time through the national system and the advantages of focusing on the big things.
Gradually change the current situation that most of China's core technologies are subject to people's situation. On the one hand, we must actively introduce new technologies and implement “tight-track follow-up tacticsâ€. On the other hand, we must focus on the key technologies that are more urgent and have a greater impact on the industrial chain. Conduct a focused breakthrough.
In addition, this research report also suggests that relevant state agencies should make temporary rescue plans for related industries.
The report believes that ZTE’s sanctions for violations may affect the entire industry and may affect the three major telecommunications companies, some foreign trade companies, and various supporting enterprises. Since China's chip industry is heavily constrained by developed countries such as the United States, the domestic market of the communications industry is highly concentrated, and there may be more related transactions, so there is an expanding risk.
To this end, it is recommended that under the premise of serious investigation and investigation of relevant responsible persons in accordance with the law, every effort should be made to keep the current state-owned leading enterprises, and to make rescue plans for the corresponding industries and key enterprises in advance.
This report also made recommendations on the next step of development and growth of the subsidiaries of the SASAC.
First, central enterprises should change their growth methods as soon as possible, accelerate innovation and development, cultivate core competitiveness, and lay a solid foundation for becoming a world-class enterprise with global competitiveness.
Second, central enterprises should take the incident of ZTE Corporation as a lesson, further improve the corporate governance structure, form an internal mechanism that can be self-disciplined, self-development, and full of vitality, and prevent insider control. To investigate various business risks, especially foreign-related risks, major risks should be reported to the group company and the SASAC in a timely manner.
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