NXPI/QCOM: MOFCOM Says China Holds ‘Solemn’ Stance Against ZTE Ban

Event Driven Takeaways

  • China’s Ministry of Commerce, or MOFCOM, has made “solemn representations” to the U.S. about America’s exports control over Chinese telecom giant ZTE, indicating an official state intervention into the matter.
  • MOFCOM said the visiting U.S. trade delegation would report China’s stance on the ZTE case to U.S. President Donald Trump.
  • Despite consensus in certain areas, Beijing acknowledged “relatively big differences” with Washington on some issues in an official Xinhua News Agency statement following the two-day negotiations with the U.S. trade delegation.

China's MOFCOM today, May 4, said the Chinese government has told a visiting U.S. trade delegation about its "solemn" attitude against an American ban on exports to ZTE, marking the toughest defense so far by Beijing in support of its strategically important telecoms equipment and smartphone maker. The remarks highlight a formal state intervention into the April 15 exports control that is threatening the survival of ZTE, a critical participant in China's initiative to lead in the next-generation 5G network development. Earlier, the rhetori