The company also states that the ban will not only "severely impact [their] survival and development" but that the ban will also "cause damages to all partners of ZTE including (sic) a large number of us companies". "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", it said in the statement. The Chinese company claims that they spent over Dollars $50 million in export control and compliance previous year. She said the United States actions go against the principles it espouses of equality, fairness and reciprocity.
The heads of the CIA, the NSA, and the Federal Bureau of Investigation, as well as the director of national intelligence and several congressmen, all spoke about the potential dangers of owning or using a mobile device from foreign companies like ZTE and Huawei during a Senate Intelligence Committee hearing.
That, coupled with US -based software makers, Google included, put the company in an extremely tight spot moving forward, and will likely require a complete rethink of ZTE's business model, if upheld. A ruling would be made within 30 days.
ZTE said it has established a compliance management committee directly under the leadership of the company's president; set up a team of global experts on compliance on export controls; hired a number of world-class consultants to provide professional guidance; and built a framework for adhering to export restrictions.
"Refusal orders will not only seriously endanger the survival of ZTE, but also hurt the interests of all ZTE's partners including a large number of USA companies". He has threatened tariffs on many types... So in return, China is finding fault with Qualcomm's planned takeover of NXP Semiconductors to hurt America, as well as doubling down on developing its own high-end chips to decrease reliance on the US.
ZTE chairman Yin Yimin told domestic media on Friday at its Shenzhen headquarters that the firm would increase research and development as "relying on oneself is better than relying on others", state media Xinhua reported.
It added that it will "not give up its efforts to resolve the issue through communication", and it seems likely that any "judicial measures" would revolve around an appeal against the severity of the sentence: After all, ZTE Corp.
Trading in its shares has been suspended in China since Tuesday. As of Monday's close, they were worth some $19 billion.