首席出口管制合规官致业务合作伙伴的季度通讯稿 – 2020年第二季度

Dear Valued Business Partner:

尊敬的业务合作伙伴：

At ZTE, we understand that export compliance benefits both our company and our business partners.  This update describes some of our efforts in Q2 2020 to ensure export control compliance  and to maintain strong relationships with our business partners.

中兴通讯了解出口合规能够让我们和我们的业务合作伙伴达到双赢。本篇通讯稿介绍了我们在2020年第二季度为确保出口管制合规以及为维护与业务合作伙伴稳固关系而作出的努力。

●Export Control Law and Policy Tracking: In order to ensure compliance with the latest export control legal requirements, ZTE has established an effective export control law and policy tracking mechanism. During the quarter, ZTE actively tracked various rules updated by the US government, such as the elimination of License Exception Civil End-Users (“CIV”) , amendments to foreign-produced direct product rule, and expansion of controls for military end users and end use in China, Russia and Venezuela. Through timely tracking and professional in-house analysis and external counsel support, ZTE responded quickly by updating the company's export control compliance requirements and maintained the stability of the company's supply chain, so as to make efforts for the business stability between ZTE and our partners.

●出口管制法律政策追踪：为了确保遵守最新的出口管制法律要求，中兴通讯建立了有效的出口管制法律政策追踪机制。在本季度，中兴通讯积极追踪美国政府发布的多条规则变更，例如民用最终用户（“CIV”）许可例外的移除、外国制造直接产品原则的修订、扩大对中国、俄罗斯和委内瑞拉军事最终用户、最终用途的限制等。通过及时的追踪、公司内部专业的分析和外部咨询机构的支持，中兴通讯做出快速反应，更新了公司出口管制合规要求，维护了公司供应链的稳定，为中兴通讯与合作伙伴之间的商业稳定做出努力。

●Risk Assessment: As the focus of ZTE’s 2020 export control compliance work plan, risk assessment includes two parts: risk assessment of ZTEC’s business areas and risk assessment of ZTE-controlled subsidiaries. For the ZTEC, the risk assessment team selected a typical and common business area of the ZTEC as the risk assessment pilot. Through the evaluation of the pilot area, ZTEC can deeply explore the methodology of ZTEC's risk assessment in this business area, and establish a risk assessment mechanism, while accumulating practical experience and preparing for future assessment for all business areas of ZTEC. In terms of the subsidiaries, through a structured review and inspection on the subsidiaries’ regular export control compliance system, an evaluation of the completeness and effectiveness of the subsidiaries’ compliance control points will be made. This will eventually produce the assessment with risk-evaluation level, as a basis to support and guide the construction of the subsidiaries export compliance program ("ECP") and normalize inspection/self-inspection and audit. Through risk assessment, ZTE can better identify the export control compliance risks that the company may face, establish countermeasures to control these risks, and continue to improve the effectiveness of the company's export compliance control system.

●风险评估：作为中兴通讯2020出口管制合规工作的重点，风险评估包含对中兴通讯股份公司业务领域风险评估和对中兴通讯控制的子公司的风险评估两部分。在股份公司，风险评估工作团队选取股份公司的一个具有典型性和普遍性的业务领域作为风险评估试点。通过对试点领域的评估可以深入探索股份公司该业务领域风险评估的方式和方法建立风险评估的机制，同时积累实践经验，为将来的全面评估做好准备。在子公司方面，通过对子公司的常规出口管制合规体系的系统性审阅和检查，对子公司合规管控点的全面性和有效性进行评价。这将用于刷新风险评估等级，以此为基础支持和指导子公司出口合规项目（“ECP”）建设和常态化检查/自查以及审计。风险评估是为了更好地识别出公司可能面临的出口管制合规风险，建立应对措施来管控这些风险，持续提升公司出口合规管控体系的有效性。

●Continued Progress of the SAP-GTS System Implementation Project: In Q2 of 2020, ZTE continued to extend Global Trade Services (“GTS”)  screening scopes and integrated a new system module to transfer subcontractor individual master data into SAP-GTS for automatic SPL screening, which will reduce workload and promote screening efficiency greatly. At the same time, ZTE was implementing more comprehensive product screening solution for different sales models to enhance screening accuracy and reduce compliance risks. Through these measures, ZTE’s automated compliance management and control has been enhanced continuously.

●持续推进SAP-GTS系统实施项目：2020年二季度，中兴通讯持续扩展全球贸易服务（“GTS”）的扫描范围，通过对外包租赁人员数据库实现自动化扫描，可以降低扫描工作量，提升扫描效率；同时，中兴通讯正在实施更加全面的产品扫描方案，以适配不同的产品销售模式，提升扫描结果的准确性，有效降低合规风险。通过这些举措，使公司自动化合规管控工作得到增强。

●Continued Progress the ECCN Project: The ECCN Classification Management Team has provided on-site training on the Subsidiary ECCN Online Publication Operation Guideline for the pilot subsidiaries, so as to further improve the standardization of the subsidiaries’  Export Control Classification Number ("ECCN") online publication operation of the subsidiaries. In addition, the ECCN Classification Management Team has continuously enriched the ECCN classification expert team by the completion of training and certification of level 1 ECCN classification experts in the first half of 2020. Through these measures, ZTE will further improve the construction of the export authorization system and expand talent resources for export control compliance. 

●持续推进ECCN项目：ECCN分类管理团队就《子公司的ECCN上网发布操作指引》对试点子公司进行了现场培训，进一步提升了子公司出口管制分类编码(“ECCN”）上网发布操作的规范性。此外，ECCN分类管理团队还不断充实ECCN分类专家队伍，目前已经完成了2020年上半年一级ECCN分类专家的培训和认证工作。通过这些举措，进一步完善了出口授权体系建设，为出口管制合规能力提升储备人才资源。

●Cooperation with External Regulators: The recommendations of external regulators can help ZTE improve the Export Control Compliance system and reduce the systematic risks on Export Control Compliance. ZTE has always taken the cooperation with external regulators seriously.During the pandemic, ZTE continues to support the interview and on-site inspection of external regulators mostly in a remote way. As part of the Company's efforts to strengthen its Export Compliance Program, ZTE will continue to work closely with the SCC team and the Monitor team to further improve its export control compliance system. 

●和外部监管机构的协作：外部监管机构的建议能够帮助中兴通讯完善出口管制合规体系，降低公司在出口管制合规方面的系统性风险。中兴通讯一直非常重视与外部监管机构的合作。在疫情期间, 中兴通讯通过远程为主的方式，继续支持监管机构的访谈和现场检查工作。作为公司强化其出口合规项目的一部分，中兴通讯将会继续与SCC团队和监察官团队密切合作，进一步开展出口管制合规体系完善的相关工作。