(Yicai Global) Apr 20 -- ZTE Corp. warned today that a US ban on exports to the Chinese telecoms equipment maker could put the company in "shock" and bring it to an "abrupt halt" but said it is upbeat about taking on challenges.
A US denial order issued by the Department of Commerce’s Bureau of Industry and Security, BIS, could bring the company to an abrupt halt immediately, warned ZTE Chairman Yin Yimin in a press conference today, but added that the company is confident it can take on challenges.
Yin’s remarks follow the company’s first official reaction issued on its website earlier today, in which it called the US ban preventing American companies providing software and components to ZTE “extremely unfair” and “unacceptable.”
The BIS issued a seven-year denial order on ZTE on April 16, which bans the firm from buying more than a fifth of its supplies, which comes from American companies.
However, the US ban will also affect hundreds of global operators and millions of US consumers, and harm thousands of ZTE partners including US firms, Yin added during the press conference which provided access only to a limited number of media organizations at the Shenzhen-based company’s research center.
"I strongly object to the US decision, strongly object to the unfair, unreasonable penalty, and even more object to politicizing trade issues," Yin said.
"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," the company said in a statement on its website earlier, denouncing the decision as extremely unfair.
ZTE’s main products are developed by the company, but it is unavoidable to purchase some parts from outside, Yin added. The IT industry is one of the most open industries in the world, and, therefore, all countries are engaged in a highly-dispersed supply chain, he said adding no country can establish an entirely independent supply chain. Even though the US holds a leading position in the field, American companies also rely on the global supply chain, Yin said.
ZTE will increase investment in research and development, he announced.“It is better to rely on oneself than to seek help from others," Yin said, adding ZTE is confident in taking on challenges.
Editor: Mevlut Katik