ZTE Flash! U.S. sanctions?

category:Finance
 ZTE Flash! U.S. sanctions?


Yesterday, a ban was issued on Chinese enterprises.

According to reports, the U.S. General Administration on Wednesday issued a provisional provision banning the use of federal government funds to purchase telecommunications equipment from five Chinese companies, Huawei, ZTE, Haikangwei, Dahua and Haineng, under the Defense Authorization Act of 2019, which will come into effect on March 13.

Five of them, except Huawei, are A-share listed companies.

The Ministry of Foreign Affairs responded to the US governments ban on the purchase of telecommunications equipment by Chinese enterprises such as Huawei.

Strong dissatisfaction and firm opposition

Q: It is reported that the US General Administration issued a provisional regulation on Wednesday that it will prohibit the use of US federal government funds to purchase telecommunications equipment from five Chinese companies, Huawei, ZTE, Haikangwei, Dahua and Haineng, in accordance with the Defense Authorization Act of 2019, which will come into effect on the 13th of this month. What is Chinas comment on this?

The abuse of national power by the United States deliberately tarnishes and suppresses specific Chinese enterprises by all means, seriously damages the national image and self-interest of the United States, and even more seriously damages the global industrial chain and supply chain. It has been and will continue to be widely opposed and resisted by all countries in the world. We firmly support relevant Chinese enterprises to take legal weapons to safeguard their legitimate rights and interests, and will continue to take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.

We urge the United States to abandon the Cold War mentality and zero-sum game concept, stop politicizing economic and trade issues, stop unreasonable suppression of Chinese enterprises, and do more to promote the healthy and stable development of Sino-US economic and trade cooperation.

Huawei responds to the U.S. import ban: it will continue to challenge the constitutionality of the ban in U.S. courts

On August 7, local time, the U.S. government contract agency issued an Interim Regulation prohibiting federal agencies from purchasing telecommunications equipment from five Chinese companies, including Huawei. Huawei issued a media statement on the 8th, saying that the FY2019 Defense Authorization Act and its implementing provisions take punitive action against Huawei without any evidence of wrongdoing by Huawei, which is based on trade barriers established by the country of origin.

In its Media Statement on the Trump Governments Prohibition of Federal Institutions from Purchasing Equipment or Services from Huawei, Huawei said, We are not surprised by todays news. This is only the implementation regulation of the U.S. Defense Authorization Act of FY2019. Huawei will continue to challenge the constitutionality of the ban in the Federal Court.

Huawei said that the Defense Authorization Act of FY2019 and its implementing provisions took punitive action against Huawei without any evidence of wrongdoing. They were based on trade barriers set up by the country of origin. They did not help to protect the security of the U.S. telecommunications network and system, and ultimately harmed American farmers. Villages rely on the vast number of users of Huaweis network.

Haikangwei: The US temporary ban has no additional impact on the company

The so-called temporary ban reported by the media recently is actually a temporary fact made by the United States Department of Defense (DoD), the United States General Administration (GSA) and the National Aeronautics and Space Administration (NASA) to implement the requirements of the United States Defense Authorization Act 2019 and the Federal Procurement Rules (FAR), Haicongwei said in a statement. Enforcement of regulations.

Stocks have fallen sharply

ZTE once fell to a halt

Influenced by the news, ZTE A shares fell once, then narrowed down to 6%, while Hong Kong shares fell 12%, then narrowed down to 6%.

On August 9, ZTE responded that its current production and operation activities were normal and its fundamentals remained unchanged.

Tianfeng Securities also said that, 1. ZTE did not sell equipment to the United States, need not worry about this, and ZTE is now very compliant; 2. We have no problem in judging the performance of ZTE. We predicted 1.2 billion to 1.8 billion before, we judged in the middle; 3. Huaben has not removed the list of entities, Huawei is fully prepared, No. Fear; 4. The event does not affect the 5G process. Therefore, these concerns are excessive, and we are still firmly optimistic about ZTE.

In addition, after the opening of the morning, Haikang Weiwei and Dahua shares, which were temporarily banned, fell by nearly 5%.

But by the time of publication, the decline had narrowed sharply, with Haikangweis share price falling 2.28%.

Source: Han Yukun_NBJ11142, Responsible Editor of China Foundation Newspaper