How to resolve the ZTE incident ?Mr Trump's latest speech sends three signals.

    Things have taken a new turn.

    According to media reports, US President Trump said at the White House that the US and Chinese governments have not reached any agreement on the ZTE incident. The day before, the US "Wall Street Journal" also quoted people familiar with the matter as saying that the two countries have reached an agreement on the general path to solve the ZTE problem.

    Many people are confused. Has the United States changed its mind again? Why is there no agreement? Is it punching China in the face?

    It is true that the message is mixed, but to understand it, one needs to understand the broader context of American politics today. Specifically on the ZTE issue, in bullpiano's view, the focus of Trump's latest speech is not actually not to reach an agreement, but to release three signals to solve the problem.

    First, it was the point of Trump's speech.

    In addition to saying that no agreement has been reached, Trump this time, don't forget that he also has this sentence: the United States blocked ZTE, so that many American companies have suffered an impact, "can make them pay a huge price, but it does not have to hurt all these American companies."

    That should have been the focus of his speech.

    You know, before Trump said that the ban on ZTE has also lost many jobs in China, which has caused no small controversy in the United States. Some political opponents attacked him for being more concerned about Chinese jobs than an American president; Therefore, he is now talking about the loss of American business, to a large extent to stop the mouth of political opponents. Everyone should also understand Trump's pains.

Second, the United States has also made specific conditions. 

    Trump also said he envisions ZTE could pay up to $1.3 billion in fines, change management, install a new board and adopt "very, very strict safety regulations." Trump also envisions ZTE sourcing a large proportion of its components and equipment from the United States in the future.

This in fact also for the final turnaround of the ZTE incident has set a price: astronomical fines, comprehensive replacement of management, more imports of American goods in the future, the next example.

    The United States had been covetatious, and now finally to the United States caught the opportunity, ZTE does not shed the skin does not want to pass smoothly. But since the extra code has been opened, the ZTE problem has been solved, which is a large probability thing. In fact, Trump is also turning to the Americans to say that stopping the ban on ZTE now will do more good than harm to the United States.

    Third, China and the US actually have a tacit understanding.

    As for Trump, China and the United States have not reached any agreement. That doesn't seem to be wrong. Indeed, the Sino-US joint statement issued after the latest round of talks did not mention the ZTE incident.

    But it was more of a diplomatic statement. After all, US Treasury Secretary Mnuchin also said that ZTE could not be put to death; The Wall Street Journal also quoted sources as saying that China and the United States have actually reached an agreement on solving the ZTE problem, and once the agreement is signed, the United States will lift the relevant ban on ZTE.

    These signs show that on the ZTE issue, there should be a tacit understanding between China and the United States, but for some consideration, it was not written into the joint statement, but was released through the channel of so-called sources. This also shows the wisdom of the negotiating teams on both sides.

    In particular, in the United States, the ZTE incident has become a tool of political struggle. This objectively makes Trump cautious and deliberately releases some mixed messages.

    From this perspective, it is really difficult for Trump to appease the emotions of some people in China and also to deal with the problem in the face of reality.

    But diplomacy is what it is, some written on paper and some more reflected in concrete actions. Therefore, in many cases, we should listen to what they say but also watch what they do.

    Of course, the game is still going on, and there is no lack of precedent for tearing up agreements. Strive for the best and prepare for the worst.

    The ZTE issue will likely be properly resolved soon, but the shortcomings of our core technology exposed by this issue must be warned, and we should really thank the Americans for reminding us!