Can ZTE retire the countdown and be able to regain a new life?

ZTE’s lifting of the ban has entered the countdown...

In the early morning of June 6, Reuters reported that ZTE had signed an agreement to revoke the US Department of Commerce's procurement ban, allowing the telecommunications equipment manufacturer to resume its procurement operations with US suppliers.

The dawn of ZTE is finally infinitely close. The main business that has been stagnant since the refusal will be quickly restored, and ZTE will return to the main battlefield of communication again.

Can ZTE retire the countdown and be able to regain a new life?

The cost of lifting the ban is not surprising. The report said that the preliminary agreement included a fine of $1 billion, including adjustments to its board of directors and executive team.

During World War II, British Prime Minister Churchill delivered a famous speech. "This is not the end. This is not the beginning of the end, but it is the beginning of the beginning." This sentence is also adapted to the current ZTE. With the high cost of lifting the ban, it is far from the end. After the rapid recovery of normal operations, the battle of ZTE has just begun.

“Only through hellish tempering can you build the power to create heaven”

The refusal to make the incident is a profound lesson for ZTE. ZTE has reported that it has lost more than $2 billion since it was banned from doing business with US suppliers on April 16.

The reason for the refusal to activate was the fault of the work of a small number of employees and cadres of ZTE and the failure of the company's management process to be implemented. Small mistakes, but led to unimaginable serious consequences, people can not help but sigh.

The harsh US sanctions are certainly related to complex political situations and sensitive international relations. Since taking office, the Trump administration has adopted the principle of "US priority" as the principle of abandoning trade fairness in law enforcement, not complying with the basic rules of the agreement, and wielding sanctions and sticking out on all sides, hoping that all parties will come to the economy. Especially for Chinese high-tech companies, the Trump administration regards it as a key concern and target.

In the context of Sino-US trade conflicts, the ZTE incident "just happened at the right time" and quickly fermented, not only became a hot topic in the domestic industry and the society, but also became a pawn of the American party struggle, and was deeply involved in it. Sino-US trade conflict. Although it shows from the gestures of China and the United States, it is not intended to treat the ZTE incident as part of the entire trade conflict, but to solve it separately. However, it can be seen from the statements of the parties in the United States that the ZTE incident is heavily populated with political factors. On the one hand, the Trump administration constantly explores China's bottom line in order to obtain as much interest as possible; on the other hand, it can also "sponsorship" to the American people by solving the ZTE incident, thereby consolidating its influence. Including the final lifting of the ban, but also fully considering the needs of American companies, it is expected that ZTE will purchase more American products, in line with its "US interests first" principle. The Chinese government has fully considered that the impact of the refusal on ZTE is fatal. It is not only related to the employment of 80,000 people, but also greatly affects upstream and downstream related enterprises, which in turn affects social stability. The Chinese government has made representations with the US government based on the consideration of corporate importance, strategic layout, and social equity.

Indeed, ZTE’s own negligence also requires profound reflection, painstaking efforts, improved management, and cultural change. Since 2017, it has invested huge resources and energy in the construction of compliance organization system, business compliance system and compliance culture. However, as a world-class multinational enterprise, ZTE has complex business and many employees. Every employee has no negligence at any time, and ZTE needs to work harder.

Despite the high cost, it is worthwhile to exchange the harsh conditions for a company's vitality and subsequent development. After all, ZTE is a public enterprise that undertakes many corporate responsibilities and social responsibilities. It directly links 80,000 employees, hundreds of carrier customers worldwide, thousands of partners and suppliers, and hundreds of millions of company terminals. Consumer users and more than 300,000 shareholders worldwide. Whether it survives or not is of great significance.

"You must have experienced the pain before you can realize the happiness of life." People who walk a circle on the edge of life and death often cherish life more. ZTE, which has struggled for nearly two months in a difficult situation, has experienced the life and death of the company, and will also cherish the opportunities of life, from the inside out, from compliance to management to culture, and carry out comprehensive innovation.

Some experts in Japan have said that “when it comes to the end of the crisis, should we think about it, what changes can this crisis bring us?”

For example, ZTE, if you can learn from this crisis and create a more compliant, transparent, and more aggressive global enterprise, it is not a good thing.

How does the battle horn blow ZTE how to turn over?

After the lifting of the ban, ZTE must first lay the groundwork to resume normal operations.

The so-called "the terracotta warriors have not moved, the grain and grass first", to fight a battle, all-round preparation is very important. It is reported that ZTE has repeatedly stressed that its core competitiveness has not been affected during the refusal period and is ready to return to business.

ZTE has laid a solid foundation for its accumulation over the past 33 years. As the world's fourth largest communications equipment manufacturer, its annual revenue exceeds 100 billion yuan, with 80,000 employees, and the industry chain involves tens of thousands of domestic and foreign jobs. From the perspective of R&D investment, patent quantity and market performance, whether it is technological innovation capability, market operation capability, or the degree of internationalization of enterprises, it can be regarded as an industry leader.

During this refusal, ZTE's core research and development capabilities were retained. More than 30,000 R&D personnel are the strong backing in the campaign, allowing ZTE to continue to maintain its leading edge in technology, products and markets. Especially for the future 5G field, ZTE has strong competitiveness. In 2017 alone, ZTE has made several important breakthroughs in the 5G field. In February, ZTE released a full range of pre-commercial base stations for 5G, and launched the 5G bearer solution based on IP+ optical. Flexhual; in October, ZTE and its Italian partners launched the first 5G pre-commercial network in Europe; in December, ZTE launched 5G core products of service architecture. As of the end of 2017, ZTE has 2,000 global 5G strategic layout patents, and maintains a strong first-mover advantage in the development of 5G standards and national test nodes. In April 2018, based on ZTE's first 5G standard, officially frozen in December 2017, the 3GPP R15 standard, the first 5G phone in China was successfully opened in Guangzhou.

ZTE's overseas marketers, which are distributed in more than 100 representative offices around the world, are the "vanguards" of the campaign, maintaining the comprehensive ability to maintain and operate more than 600 existing networks worldwide and serve 1 billion users. Have the ability to commit to project engineering service delivery and development at any time. The good market structure that ZTE has accumulated in the communication market for a long time will also help to gain more market share through upgrade, maintenance and expansion services in the company for a long period of time.

The supply chain is the “big rear” of the campaign, maintaining a benign relationship with suppliers during the refusal order, laying a good foundation for rapid recovery and production.

At the same time, ZTE adheres to compliance and adheres to credit. The cultural temperament that has been courageous during the refusal has effectively maintained the credit system, making this battle more faithful and worthwhile. Many customers and partners around the world understand the difficulties faced by ZTE and do their best to support them. The agent who cooperated with ZTE for seven years sent a letter saying: "ZTE's powerful human core, who can deny that the next 7 years will not be a reversal of ZTE's resurgence?"

Success in counterattack is a great company

In the field of global communications, ZTE has made tremendous efforts and gained fruitful results in the journey. Prior to the refusal, Ericsson and Nokia, among the top global communications equipment manufacturers, became weaker in the market competition, and revenue and profits fell sharply. ZTE has continued to grow against the trend, and its performance far exceeds the overall development level of the industry, maintaining a profit increase of more than 30%. According to this trend, 2018 will be a year of ZTE's comprehensive transcendence, and it will gain a more critical position in the global market. The Chinese communication equipment manufacturers are also expected to occupy the top two positions in the world, in the future-oriented communication. The technology field has gained more voice.

This is a good foundation. Although the refusal has affected this process of transcendence, if it is a crisis, it will encourage enterprises to obtain further management and compliance optimization after learning lessons, plus ZTE's ability to retain technology research and development capabilities and market expansion capabilities. The development path of its globalization will not become narrower and narrower, and it will only become wider and wider. The transcendence and counterattack in the communications industry are also particularly promising.

In particular, 5G, as a new generation of mobile communication technology, is expected to be one of the main driving forces for the further development of the social economy. At the critical moment when the 5G standard is becoming clearer, ZTE will get out of trouble in time and return to the track of industry development as soon as possible. And the development of technology should bear the responsibility. At the same time, it can also make greater contributions to the development of the global communications industry with the help of innovation capabilities in the 5G field.

However, the road ahead will not be flat. In the complicated and changing international situation, every step taken by the company is like a thin ice. The lifting of the ban is really not the end. If ZTE’s belief in becoming a truly great global enterprise has not changed, then now It’s not fortunate to be done, not to let out a sigh of relief, but as Roosevelt said: “Just fight for victory and work!”

Or Churchill, after the end of the Battle of Allah in the battlefield of North Africa in World War II, he said with pride: "We were fighting unbeaten before the Battle of Alamein, and we were invincible after the Battle of Alamein."

Can ZTE, which suffered the biggest setback in the process of globalization, be reborn as a result of the lifting of the ban, and in the future battles concerning enterprise development, “invincible”? We look and look forward to it!

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