Dear Business Partner,
ZTE believes that export compliance is of critical importance to sustainable
business development, for us and for you as well. This newsletter describes the major efforts we have made
in the fourth 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 October 17, 2023, the Bureau of Industry and Security (BIS) under the U.S.
Department of Commerce updated the export control rules on advanced computing semiconductors. The new
rules have imposed severer restrictions with wider impact. After the new rules were released, ZTE
immediately conducted interpretation as well as analysis and inspection of possible impacts on the
business. Specifically, we have identified and confirmed the purchased parts that may fall within the
scope of the new rules, and analyzed and classified the self-developed products that may be affected.
Accordingly, the company issued compliance guidelines related to the new rules, specified the applicable
export authorizations, and provided solutions for incorporating relevant compliance controls into business
IT systems, thereby ensuring efficient, stable, and compliant business operations.
Also, the company continued to strengthen exchanges with partners to enhance
our compliance credibility. In Q4 2023, my team and I visited customers in Myanmar, the Philippines,
Singapore, Vietnam, Hong Kong SAR, Dubai, Qatar, and Egypt, exchanging ideas and experience in compliance
practices. Meanwhile, over 30 partner companies were invited to ZTE, to know about our digital tools for
compliance management and discuss the future trend of digital compliance management. Through these
activities, we hope to enhance the mutual understanding with our partners and further increased the
influence of our compliance brand.
It is also worth sharing that, with ZTE's continuous efforts, breakthroughs in
the face-to-face communication with the U.S. government agency have been achieved. In October and November
2023 respectively, I met with BIS officials twice in Washington. During the meetings, we exchanged views
on the monitorship as well as the interpretation and application of export control rules. ZTE looks
forward to establishing a long-term communication mechanism with BIS to actively share the company's
progress in compliance system building.
On November 16, 2023, the Export Control Compliance Session of ZTE's 4th
Multinational Corporation Trade Compliance Symposium was successfully held in Shenzhen. This session
gathered government officials, business professionals, and pioneers in corporate compliance for
exploration into such topics as changes in export control rules inside and outside China, digital
compliance management, and high-quality compliance system building. The insights of the speakers and
heated discussions during the session have brought inspiration to attendees on how to maintain steady
operations while making progress under such a volatile environment.
In 2024, ZTE will continue to optimize its export control compliance
management system and further promote digitalization in this regard for effective and efficient compliance
risk control, thus safeguarding the steady business operations of both of us.
Chief Export Compliance Officer
+65 84999511 (Singapore/新加坡)
+86 15768250208 (China/中国)