Quarterly CECO Newsletter to Business Partners – Q1 2023

Dear Business Partner,

ZTE believes that export compliance is conducive to our sustainable business development. This newsletter describes some of the major efforts we have made in the first quarter of 2023 to ensure export control compliance. We believe these efforts will help manage export control compliance risks and promote the sound development of our business relationship.

On February 23, the 2023 Export Control Compliance Forum was held in Beijing under the guidance of the Ministry of Commerce of the People's Republic of China. This forum was organized by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products ("CCCME") and co-organized by ZTE. At the forum, Mr. Shen Nan, ZTE's Senior Vice President and Chief Legal Officer, shared ZTE's practices in digitalizing its export control compliance system and enabling effortless, intuitive compliance. Notably, ZTE's booth at the forum venue was visited by many officials, including Mr. Wang Shouwen, China International Trade Representative and Vice Minister of Commerce, and Ms. Lv Weihong, Vice Minister of the General Administration of Customs of China. During their visit, Mr. Xie Xianxin, Deputy Director of ZTE Export Control Compliance Department, introduced ZTE's self-developed Export Compliance Screening System (ECSS). As China's first export compliance screening system with independent intellectual property rights, ECSS was highly recognized by the officials for its role in breaking the monopolies in the industry, protecting national data security, and lowering deployment costs for companies. During the forum, the CCCME announced the establishment of the Export Control Compliance Committee, with ZTE being one of its Committee Chairs. Mr. Liu Jian, ZTE's Senior Vice President, attended the ceremony on behalf of ZTE.
2月23日,"2023年出口管制合规论坛"在北京举办,本次论坛由中国商务部指导,中国机电产品进出口商会主办,中兴通讯股份有限公司协办。在论坛上,中兴通讯股份有限公司高级副总裁、首席法务官申楠,向出席论坛的领导与行业同仁介绍了中兴通讯在出口管制合规体系数字化、构建"低感"、"无感"合规管理体系等方面的实践。在论坛会场外的展台上,中兴通讯出口管制合规部副主任谢贤新向中国商务部国际贸易谈判代表兼副部长王受文、海关总署副署长吕伟红等领导介绍了中兴通讯自主研发的中国首款拥有自主知识产权的出口合规扫描系统ECSS(Export Compliance Screening System)。领导们认真听取了产品汇报,并对ECSS在打破行业垄断、保障国家数据安全以及提供产品低成本实施方案方面所做的努力给予了充分的肯定。论坛期间,中国机电产品进出口商会宣布成立出口管制合规委员会,中兴通讯高级副总裁刘健作为主任委员单位代表出席了成立仪式。

As always, ZTE stays alert to changes in export control laws and regulations, analyzes their impact on business, and takes targeted controls in a timely manner. For example, in January 2023, the United States added Macau to the controls implemented on certain advanced computing and semiconductor manufacturing items destined for the Chinese mainland or Hong Kong. Also, the United States imposed additional sanctions against Russia and Belarus in this March. After learning about these restrictions, ZTE Export Control Compliance Dept. and other related departments rapidly analyzed the possible impacts and conducted business inspections. In this way, we aim to ensure that the company's export control measures always comply with the latest regulatory requirements and thus maintain stable business operations.

ZTE is committed to strengthening the exchanges with business partners over compliance. At MWC Barcelona 2023, after introducing our current progress of compliance management to a number of customers, we strongly enhanced customer trust. After the Congress, we had a more extensive conversation with European customers, elaborating on ZTE's compliance program for 2023, digital tools for compliance management, and the policy tracking mechanism. By doing so, we have demonstrated the company's determination and ability to facilitate customer success with compliance, winning customers' recognition and trust.
中兴通讯持续加强与业务合作伙伴的合规交流,在2023年巴塞罗那世界移动通信大会(MWC Barcelona 2023,巴塞展)上,我们与参会的多家客户进行了合规交流,介绍了公司的合规现状,提升了客户信任度。会后又进一步与欧洲客户进行了深入交流,介绍了公司2023年的合规计划、数智化合规管理工具以及政策追踪机制,展示公司应用合规支持客户业务的决心与能力,努力赢得客户的认可与信心。

This year, ZTE continues to enhance cooperation with the SCC team. Specifically, ZTE has been continuously improving the audit cooperation mechanism to facilitate the SCC team's third annual export control compliance audit on the company. Also, we actively arranged for the SCC team to participate in ZTE's activities at MWC Barcelona 2023 and sent out a team of compliance experts to provide on-site support. In this process, we had effective communication with the SCC team and showcased the company's progress in compliance system building, receiving positive comments from the SCC team.

Lawrence koh 许绍勤 Chief Export Compliance Officer 首席出口管制合规官 ZTE Corporation 中兴通讯股份有限公司 Lawrence.koh@zte.com.cn +65 84999511 (Singapore/新加坡) +86 15768250208 (China/中国)