On April 16, a blockbuster news came out that the U.S. Department of Commerce announced a ban on U.S. companies from selling any parts to ZTE for up to seven years.


At present, in the face of the refusal order from the United States, ZTE is only announcing that it has been informed of the refusal order of the U.S. Department of Commerce for the activation of the company. The company is making a comprehensive assessment of the possible impact of the incident on the company, actively communicating with all parties and responding to it. Apart from that, no news has come out.

Established in 1985, ZTE is a leading global provider of integrated communication solutions, providing innovative technology and product solutions for telecom operators and enterprise network customers in more than 160 countries and regions, serving the mainstream operators and enterprise network customers worldwide. After more than 30 years of development, ZTE has developed into a world-renowned enterprise.


It is noteworthy, however, that ZTE relies heavily on imports from the United States for both base station RU transmitter/receiver chips, high-end optical communication chips and smartphone chips. If the United States no longer sells chips to ZTE, ZTE has no supplier of chips, which will undoubtedly have a great impact on ZTE's products.


At present, we do not know how ZTE can overcome the difficulties, and what the final outcome of this matter is, but we can clearly see the importance of core technology for a manufacturing enterprise.


Core technological competence refers to the ability of an enterprise to create technology with its own characteristics by means of unique technological elements and skills or a unique combination of various elements and skills, so as to generate scarce and non-imitative technological resources (including technology and knowledge), which is an important basis for the competitiveness of an enterprise.


Firstly, core technology is non-replicable. It is based on deep insight into industry, market and users, and long-term incubation of the environment. It has its own unique characteristics and is not easy to be imitated by other enterprises or potential competitors. Enterprises can also protect their technology through patents and other means.


Secondly, only by mastering the core technology can enterprises have a strong market competitiveness. In order to gain a firm foothold in the fierce market competition, enterprises must provide products and services with good quality and appropriate price to the market, and behind them, they must have higher technical level and unique technological advantages over similar products.


Finally, only by mastering the core technology can we maintain the independence of the enterprise. If the external environment of the enterprise changes, the enterprise can easily be affected. If an enterprise lacks core technology, it is easy to overspend as the cost increases.


It is the foreign technology blockade that makes us realize the importance of core technology. It is China's powerful manufacturing industry that has experienced hardships and become stronger. Therefore, domestic enterprises must consciously cultivate and develop their core technological capabilities in order to successfully carry out technological innovation and build competitive advantages, and have stronger strength and more backers in the face of crisis.


To be sure, it is not easy to develop core technologies. It needs a stable R&D team, while investing a lot of money and time. According to statistics, Huawei's R&D investment reached 89.7 billion yuan in 2017 alone, and the cumulative R&D investment in the past ten years reached 394 billion yuan, in order to compete with Apple's unique system in the market.


However, in the face of the complex international environment and the blockade of Western core technology, the importance of core technology is more prominent. ZTE, which was rejected by the United States this time, may be the next industry to suffer! Whether it's a neck-killing or a back-to-back battle, every enterprise is worth thinking about!