[fspeech]

They will operate in one form or another that is for sure. All 75000 people are not just going to sit idle.

By being overly draconian you generate a ground swell of ill will against US suppliers. Everyone in China will be looking to replace their US components as soon as it is feasible.

For what is its worth, ZTE actually self reported the recent faux pas that led to the reimposition of the sanction. Even if they don't get any credit for self-reporting it shows that the threat of intrusive audits works. ZTE right now is a lot more under the US government thumb than any other Chinese tech company. If anything Chinese government should just let the corporate form die to end the humiliation. US on the other hand, by being the executioner, only ensures that ZTE will be replaced by another Chinese player not subject to the same supervision.