Analysis Of The Response Strategies Of China’s High-Tech Enterprises To The U.S.Entity List And Their Effectiveness

In the background of global economic recession,the U.S.government has implemented trade protectionist policies,resulting in escalating trade friction between China and the U.S.The products involved in trade friction have gradually changed from processed manufacturing products to high-tech products,and the high-tech industry,represented by communications equipment companies,has become the hardest hit by trade friction between China and the U.S.ZTE,a leading enterprise in China’s telecommunications equipment industry,has twice encountered U.S.trade sanctions,and huge fines have caused a significant decline in ZTE’s profits,and export controls have plunged ZTE’s operations into difficulties,which has greatly restricted the development of China’s high-tech enterprises and affected the confidence of Chinese enterprises in trade cooperation with the United States.This thesis takes ZTE Corporation as the research object against the background of Sino-US trade friction,adopts the case study method,literature research method,comparative analysis method and event research method,and applies the information asymmetry theory,trade expectation theory and escape from competition theory to analyze the short-term impact of ZTE Corporation’s stock price and other aspects after being sanctioned by the US by systematically sorting out the events of ZTE Corporation’s inclusion in the entity list,as well as studying ZTE Corporation’s Finally,we analyze the long-term trend of ZTE’s share price,market share,enterprise value,and financial capability to determine whether its coping strategies are effective and feasible,and draw relevant insights and suggestions to provide some coping ideas for China’s multinational business enterprises.Through the research in this thesis,it is found that:(1)from the perspective of financial indicators,R&D investment can positively contribute to the net profit of the company,and increasing R&D can cope with the sanctions.In terms of liabilities,ZTE has adjusted its total debt and optimized its debt structure,while increasing its cash and raw material reserves to adjust to the impact of sanctions in a timely manner.(2)In terms of long-term stock price trends,the stock price has fluctuated due to the impact of the epidemic,but the overall trend is positive.At the same time,ZTE has regained its brand image by hiring new spokespersons and other means,its market share is steadily rebounding,and its international market data is slowly recovering,maintaining a good growth trend.(3)Analysis of ZTE’s enterprise value through the EVA method found that ZTE has the ability to create value;at the same time,the comparison found that the U.S.sanctions have had a serious However,ZTE has seized the opportunity of5 G and is gradually recovering from its difficulties.Therefore,ZTE’s coping strategy is worthy of reference for other communication companies in China in order to deal with the U.S.sanctions.