How does the internal letter of ZTE Chairman sort out the whole process of being sanctioned?

On April 20th, Yin Yimin, Chairman of ZTE, issued an internal email saying that in the past year or so, he has always adhered to the principle of "export control compliance is the most important".

ZTE abided by American export control laws, earnestly fulfilled its obligations under the relevant agreements signed with various US government departments in March 20 17, and paid a fine of more than 800 million US dollars on schedule. The company supports independent examiners appointed by the United States to carry out various supervision work, including interviews, document submission and system testing, and the cumulative output of documents exceeds 6,543,800+0.32 million pages.

In the process of promoting compliance construction, ZTE has learned from the past and corrected it in time, and will never make the mistakes made by some management cadres in the past.

In addition, in the face of many questions from public opinion, Yin Yimin sorted out the whole process of the incident. From 2011to April 20 18, the BIS activation refusal order was issued and the investigation is still in progress.

Yin Yimin once again stressed that it is extremely unfair and unacceptable for BIS to insist on imposing the severest sanctions on ZTE. "The company will not give up its efforts to solve problems through communication and dialogue, and is also determined to safeguard its legitimate rights and interests through all means permitted by law." .

The whole event process is as follows:

201165438 On October 30th, 2006/kloc-0, the company submitted a document to the relevant departments of the US government on:

(1) Take disciplinary measures against some senior executives and employees involved in the transaction of sanctioning countries (disciplinary measures include adjusting their posts, withholding bonuses, sending disciplinary letters, etc. Some of these measures have been implemented, while others have been implemented as planned.

(2) Report on the progress and future plans of ZTE's export control compliance system.

From 2065438 to March 2007, the company reached an agreement with the Bureau of Industry and Security of the US Department of Commerce (hereinafter referred to as "BIS"), the US Department of Justice (hereinafter referred to as "DOJ") and the Overseas Asset Management Office of the US Treasury (hereinafter referred to as "related agreement"). In the agreement between the company and DOJ, four senior managers/employees need to leave the company, and the other four employees do not need to be disciplined in the relevant agreement. On May 9, 20 17, the company informed the US government that four senior executives/employees had left the company with supporting documents.

2065438+On July 20th, 2007, the first law firm hired by the company wrote to the US government, describing the completion of disciplinary measures for some employees.

2065438+At the end of February and the beginning of March, 2008, the company's chief export control compliance officer and the second law firm hired by the company collected information one after another, showing that the company did not implement the bonus deduction plan for some employees in time.

On the morning of March 5, 20 18, the company's chief export control compliance officer and the second law firm hired by the company reported this matter to me and suggested a series of actions. I agreed and arranged for quick action. On the same afternoon, President Zhao Xianming confirmed his support for these actions and stressed that they should be transparent and realistic. The company quickly arranged the second law firm to carry out relevant investigations (hereinafter referred to as "investigations"), and at the same time, the company internally checked the performance of employees' disciplinary actions.

In the early morning of March 7th, 20 18 (March 6th, US time), the company took the initiative to report the relevant situation to the relevant departments of the US government and the Ombudsman.

On March 8, 20 18, the company issued a disciplinary letter to the relevant employees and made arrangements to deduct the bonus of 20 16, which will be deducted from the bonus of 20 17. On March 20 18 18, a disciplinary letter was sent to the employees who left the company, and the responsibility for withholding bonuses will be investigated if permitted by the laws of China.

On March 8, 20 18, the company took the initiative to report the relevant situation to the district court for the northern district of Texas, USA. After that, at the suggestion of the Chief Export Control Compliance Officer and the second law firm, the company hired another law firm to conduct a parallel investigation on 20 18 and 12.

On March 6, 20 18, the company stated the relevant situation in detail to BIS, and attached the supporting documents of the measures taken by the company. The company reported to BIS that it had arranged to start the internal investigation procedure, and requested that the external law firm be given 45 days (expected before 20 18) to complete the relevant investigation.

Until April 5, 20 18 (US time), the BIS activation refusal order was issued, and the investigation was still in progress. Before the independent investigation was completed, the US Department of Commerce accused the company of making false statements in the letters of 20071October 30, 20 16 165438+ and 2065438+July 20, and then imposed the punishment of activating the refusal order. BIS ignored the company's efforts, huge investment and great progress in complying with export control compliance in the past two years. The problem of ignoring the above two letters was discovered by the company's self-examination and notified in time; Ignore the company to deal with the person responsible for negligence at the first time, correct the problem quickly, and hire an authoritative American law firm to investigate. Before the relevant investigation is over, BIS insists on the most severe sanctions against the company, which is extremely unfair to the company and we can't accept it! The company will not give up its efforts to solve problems through communication and dialogue, and is also determined to safeguard its legitimate rights and interests through all means permitted by law.

The board of directors, management and all employees of the company will unite as one, fulfill their duties and never give up. Although the company is in an extremely difficult situation, the compliance team issued the code of conduct that all employees of the company must abide by when the refusal order was activated as soon as the explanation was completed, which reflected the company's determination to resolutely abide by the laws and regulations of the country where it operates and take compliance as the cornerstone of the company's strategy. The board of directors and management of the company will do their utmost to protect the legitimate work rights of 80,000 employees and the legitimate interests of 80,000 employees' families. They will also do their best to fulfill our responsibilities to hundreds of operators' customers, thousands of partners and suppliers and end users of hundreds of millions of companies around the world, and will also do their best to protect the interests of more than 300,000 shareholders around the world.

At the same time, it appeals to all employees of the company to look at this incident rationally and objectively and avoid over-emotionalization. The company promises to truthfully disclose the final investigation results to all employees with the consent of lawyers. The company adheres to an open, transparent and honest attitude, maintains communication, solves problems in a legal and compliant manner, and tries its best to reduce the adverse impact of this matter.

I hope ZTE can survive this.