About Mr. Bao's Resignation from ZTE

            During the endless cyberbullying in 2020, trending topics popped up one by one to persecute Mr. Bao all over the manipulated social media platforms. Some fair journalist commented that all negative topics can become trending, but no positive one can. For example, “Bao Yuming stepped down from ZTE director” became a trending topic in July although he resigned immediately after the outburst of the bullying in April, bringing many absurd and outrageous rumors such that he was an American sent by the US government to bully the Chinese companies including ZTE. In fact, he was elected by the company independently based on his experience, and he resigned in the outset of the cyberbullying to avoid implicating the public companies. It deserves to introduce his performance at the company to clear the air.

            In 2018 when ZTE faced the fatal sanction by the US government, Mr. Bao took critical role at the crucial moment in charge of the spotlight function of export compliance under strict scrutiny by representatives of both US and China, and even a minor mistake may have a huge negative impact on the company and his own career, thus he became the only one who has successfully assisted two Chinese public companies in lifting US sanction as the top executive in charge. The meetings he presided sometimes had over a hundred participants from relevant teams of both countries with 2 simultaneous interpreters, the scale of which was no less than a US-China bilateral trade talk. Especially in the beginning, all the most sensitive decisions needed first be commented and signed by him, so he must endeavor to achieve the company’s goal within framework of the laws of both countries, and satisfy both sides while retaining his independency.

            At first, both sides lacked mutual trust, but denial and resistance may only worsen the situation. Therefore, Mr. Bao gave his priority to establish and strengthen mutual trust, believing although trust in all aspects is impractical, trust in certain aspect, such as export compliance, is feasible. He repeatedly stressed on the following principles in meetings: (1) The company welcomes US-appointed representatives to help improve export compliance, which is also the company’s own priority work, so they both share the common goal in this aspect; (2) No company in the world has perfect compliance system, including US major companies, nor Chinese companies be required to have perfect system; (3) The company needs reasonable time and resources to improve compliance system step by step; and (4) Once the company’s compliance system meets international standard, the company should be treated the same as US companies in terms of market regulation. Those principles received positive feedback by all relevant parties. At the time of his resignation, the company has maintained high trust and smooth cooperation among all parties.

            With regard to Mr. Bao’s performance in the company, the most authoritative conclusion should be the endorsement by chairman of the board. Below is the recommendation letter written by the chairman when Mr. Bao applied for doctoral study in Peking University and The University of Hong Kong.

            I got acquaintance with Mr. Bao when we joined the ZTE board together in June 2018, and since then we have maintained close working relationship.

            Mr. Bao is highly earnest and responsible for his work, prudent, rigorous, pragmatic and efficient, keen to break through and create result, and brave to undertake challenges with discipline and ingenuity. He is a straightforward, sincere, positive and progressive person with broad interests, and has kept smooth communication and harmonious collaboration with our team.

            He showed superb ability when working for the board and its relevant committees, including interdisciplinary knowledge combination, proactive and analytical judgment, extensive experience in management and operation of multinational companies, broad and thorough understanding in high-tech industry, deep specialization in US/China laws and compliance, international vision based on long term oversea experience, and impressive professional integrity and dedication.

            For example, when handling major events involving the US, he can take advantage of his deep understanding of the mindset and practice in both US and China, as well as his highly professional spirit, to accurately spot the issue and propose solution, proactively evaluate risk, trend and impact, appropriately apply direction, strategy and technique, calmly and carefully cope with various unexpected and complex situations, diligently achieve a result satisfactory to both sides, strongly protect the company’s best interests, and effectively make positive and healthy progress.

            Also, when the board is to make major business decision, he actively gives helpful input with his sharp professionalism and business approach as well as rich and diverse knowledge and experience, diligently finds problem and offers productive advice, provides valuable improvement in business operation and management, and strengthens corporate governance and diversity in the board.

            He is exceptionally versed in study and research, proven by such apparent example that he passed the bar exams in the US and China both at his first try solely with self-study. For the items under discussion and documents under review by the board, he always helps make improvement after thorough analysis, and find tailored solution with his interdisciplinary background in theory and practice.

            He is innovative in work rather than following old idea or the herd, with the courage to try new theory or method. He has given creative advice on many complex issues, and is good at generalizing common issues and solving similar problems once for all.

            (With regard to his intellectual ability, analytical ability, leadership skills, ability to work with others, compassion, self-confidence, maturity, initiative, creativity, persistence and drive, oral and written communication skills, the chairman marked them all as “outstanding” meaning top 5% among all colleagues.)

Exhibit 1: Group Photo of ZTE Board of Directors

Exhibit 2: The Recommendation Letter by ZTE Chairman

Exhibit 3: Public announcement by ZTE on his taking critical role

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