Late in April 25th, Beijing time, the Wall Street Journal reported that the U.S. Department of justice investigated whether HUAWEI, Chinas largest telecommunications equipment company, violated Irans export ban, making it more difficult for the restricted HUAWEI to carry out its business in the United States. The US Department of justice, Ministry of Commerce and finance declined to comment on the matter to the Wall Street journal. In response to the finance and economics question, HUAWEI said HUAWEI strictly adhered to the local laws and regulations in its operating market, as well as international export controls, including the United Nations, the United States and the European Union, and the sanctions rules. Finance on the US Department of justice website did not check the news of the agency to launch a survey on HUAWEI, but the finance retrieval of the United States Department of justice website historical news found that the agency did not start the investigation phase of public practice, only the final decision documents and related news. 4 days after the ZTE event, the U.S. Congress of the United States Congress on economic and security review issued a report on the vulnerability analysis of the U.S. Federal Information and communication technology (ICT) supply chain for China (SupplyChainVulnerabilitiesfromChinainU.S.FederalInformationandCommunicationsTechnology, hereinafter referred to as IC). T supply chain risk report. The report said that the Chinese government may support certain Chinese enterprises in commercial espionage activities to enhance the competitiveness of Chinese enterprises and promote the interests of the government. ZTE, HUAWEI, Lenovo, wave, BOE, Chinese Academy of Sciences, China Electronics Technology Group (CECT), Beijing Huasheng Tiancheng and other 19 companies were named. These 19 companies belong to state holding enterprises or national leading enterprises or have national defense background. The purpose of the report is to analyze how the US government should manage the risks associated with products and services from China, and how Chinese companies are involved in its ICT supply chain. But the selection and naming of the sensitive node made the company on the list shudder. The ICT supply chain risk report in the United States says that Beijing and AOC technology provide a display screen for American DELL; Lenovo and HUAWEI provide various hardware products for American companies and have a cyber espionage risk. In April 20th, Chinese Foreign Ministry spokesman Hua Chunying responded to the report that the United States frequently set limits on Trade and investment activities in the high-tech field between China and the United States on the basis of national security. It is clearly the reality of trade protectionism in the name of national security, exposing the hegemonic mentality of the US side only I can have, and do not allow you to have. A top company on the list told the finance and economics reporter that if the new round of trade negotiations between China and the United States was smooth, the list was not necessarily a substantial risk, but it was a effective threat to select the list at this time. The Wall Street Journal reported that the Trump administration believed that he was fighting for control over the rapidly developing digital world with China. The Chinese government can completely order HUAWEI and ZTE to control the telecommunications equipment they produce, and enable their devices to perform disruptions, espionage operations, or launch network attacks. According to the Wall Street journal, a spokesman for HUAWEI said the company was owned by employees, and no government required it to monitor or destroy another country. He said HUAWEIs global supply chain would not pose a bigger risk than its competitors. The latest report from IHSMarkit, a market research company, shows that in 2017, HUAWEI became the only telecom equipment dealer with a growing share, its share rose from 25% in 2016 to 28%, replacing Ericsson as the worlds first; Zte Corp won the worlds 13% market share last year, and HUAWEI ZTE took 41% of the worlds share. The market share of telecom equipment. But China Telecom equipment companies share a share of less than 1% in the US telecom market, compared with 48% of Finlands NOKIA and Swedens Ericsson in the US telecom market. In 2012, the US Congress issued a report that HUAWEI and ZTE could become a tool for Chinese official funded espionage or sabotage. Almost every year, the relevant investigation bodies will provide a US company risk report on the ICT supply chain to the US Congress, and HUAWEI ZTE will be on the list annually. The major countries in the world have export control policies, which is a means of trade control based on national security interests. The export control law of the United States restricts the export of several types of products: military or defense products, military and civilian dual use products and technologies, certain nuclear materials and technologies, and products that can be used for the development of nuclear, chemical, biological weapons or missile technologies for the launch of these weapons. Chinas related and heavily criticized are mainly second kinds of dual-use products and technologies, which involve many high-tech products and technologies. According to the US export control law, any company must apply for export licenses to both direct and indirect export control products to the five major embargo countries. If violating the US regulations, the related companies may be subject to three penalties: 1. high civil compensation; 2. criminal imprisonment executives; 3. companies are blacklisted for a certain period of time. You cant buy American products directly or indirectly. ZTE has been punished by third kinds of punishment. ZTE is not a US company, nor a US listed company, so the U. S. commerce department has adopted third ways of sanctions: a ban on ZTE US suppliers, which prohibits the company from continuing to provide American made products to ZTE. That is to say, when American equipment or parts suppliers supply to ZTE, they must first apply for export licenses, and such licensing applications are usually rejected. From the past cases of violation of the US export control act, there are many cases of fines. In 2005, Boeing was fined 615 million dollars by the United States government for illegal use of military chips, unauthorized use of patent documents and bribery of government officials when exporting civilian aircraft. Ericsson sold the telecommunications equipment to Cuba in 2012, and Ericsson received a penalty of $1 million 750 thousand from the US government afterwards. In Iran, Cuba and Sultan, the U.S. government has also fined HSBC for up to $1 billion 921 million, and the French bank of agricultural credit was fined $330 million, and Credit Suisse and German commercial banks have also paid similar fines. It is widely believed that with the launch of a new round of trade negotiations between the US and China, the US government will no longer play a role in Chinese technology companies. US President Trump said in April 24th that the US finance minister Mnuchin and trade representative lett Hill will lead the delegation to China in the next few days to negotiate trade issues. Trump told the media before he held a bilateral meeting with French President Ma Long on the same day. The two sides were very serious about the negotiations. Source: finance editor: Yang Qiang _NN6027 Ericsson sold the telecommunications equipment to Cuba in 2012, and Ericsson received a penalty of $1 million 750 thousand from the US government afterwards. In Iran, Cuba and Sultan, the U.S. government has also fined HSBC for up to $1 billion 921 million, and the French bank of agricultural credit was fined $330 million, and Credit Suisse and German commercial banks have also paid similar fines. Trump told the media before he held a bilateral meeting with French President Ma Long on the same day. The two sides were very serious about the negotiations.