The Sino-US trade war has started in an all-round way, leading to the US comprehensive sanctions to block ZTE Huawei

The US Department of Commerce announced on April 16th that it will ban US companies from selling parts, goods, software and technology to ZTE for seven years until March 13, 2025. The reason is that ZTE violated the US sanctions that restrict the sale of US technology to Iran. Since American companies are not allowed to sell things to ZTE in these seven years, for ZTE, the future will have a great impact on product development, planning, manufacturing, sales, etc., and will undoubtedly plung the development of ZTE.

Figure 丨Wilbur L.Ross, Jr’s statement

In fact, in 2016 and 2017, when ZTE was attacked by the US Department of Commerce and imposed sanctions, there was a bold prediction from the industry. If ZTE is really sanctioned by the United States, ZTE’s injuries will not only be short-term. The financial loss is more likely to be unsuccessful in this case. Because ZTE, which is completely blocked by the United States, will fall into the desperate situation of no parts to buy and no technology to support. How long can ZTE last? This is definitely a very big problem.

After Yin Yimin took over as chairman of the board, ZTE quickly stepped out of the shadow of US fines. In 2017, it achieved revenue of 108.8 billion yuan, a year-on-year increase of 7.5%, and net profit of 4.57 billion yuan, a year-on-year increase of 294%. The three major businesses all achieved growth. Among them, the operator's business revenue increased by 8.32% year-on-year. The growth rate ranked first among the four major equipment manufacturers, and both domestic and overseas markets increased steadily.

The four major communication system manufacturers of "Great China" actively supported by the national policy of the year have finally had two big factories, "Zhongxing" and "Huawei". They not only dominate the domestic market, but also have a place in the global market, but for many years, It is very likely that it will be defeated by the US government for a seven-year ban on sanctions.

Figure ZTE is subject to US sanctions

Compared with ZTE, many people are actually more worried that the next goal of the US government is Huawei. In fact, as early as 2016, when the US government was chasing ZTE, it was also reported that Huawei also received a subpoena to investigate its violation of the embargo sanctions. Although this incident has not been further upgraded, It is enough to make people squeeze a cold sweat. After all, compared with ZTE, Huawei has also fallen into the predicament of having to stalk with the US government, which will greatly damage the development of China's communications industry and even the overall technology industry.

In fact, when the US time broke out on the 16th, ZTE’s violation of the previous conditions of settlement with the US Department of Commerce would be banned by the US government from selling US products to ZTE, which caused the industry to be shocked late at night on the 16th. Although many people in the industry are shocked, they are not too surprised, because in the past month, the United States has not only moved more and more to China.

After the US government began to impose tariffs on China, the Sino-US trade war was launched.

In addition to the Sino-US tariff trade war that seems to be on the table, the United States has never been idle for some time, especially for Chinese companies such as Huawei and ZTE. Among them, the Federal Communications Commission (FCC), which is in charge of telecommunications network services, has reported that it will take action against some small and regional operators in the United States that purchase Huawei and ZTE telecom network equipment. Restricting these operations to receive government subsidies for the construction of telecommunications networks in remote areas, in order to deter small US regional operators from procuring equipment from Chinese manufacturers such as Huawei and ZTE.

Although this news was later not confirmed by the US FCC, even Huawei has come forward to clarify this rumor, but it is undeniable that at this time, the Sino-US trade warfare fuze has been ignited, whether it is the United States or China, it seems to be Unrelated intimidation, or provocation, may accidentally wipe out the fire and lead to an unstoppable trade war.