ZWZ Responds to Being Listed on U.S. Sanctions List

On the evening of February 16, ZWZ issued an announcement stating that the company has noticed its inclusion on the "Specially Designated Nationals and Blocked Persons List" (SDN List) recently released by the U.S. Department of the Treasury (OFAC). The company stated that it has immediately engaged both domestic and international legal teams to investigate the reasons for the sanctions and has reached out to OFAC to verify the legitimacy of the sanctions.

The SDN List is typically created by specific countries or international organizations and aims to impose economic and financial restrictions on certain individuals, entities, or countries. Hu Mingming, a lawyer from Liaoning Tongfang Law Firm, explained in an interview that being listed on the SDN list could hinder the company’s normal trade activities, particularly in international business.

ZWZ is the largest bearing technology, product research and development, and manufacturing base in China, with years of practical experience in bearings and related fields. The company has established a comprehensive system for technological innovation, with significant advantages in technology R&D, product manufacturing, marketing, and customer service.

According to ZWZ's 2023 annual report, the company achieved a revenue of 2.193 billion yuan in 2023, with export business revenue of 180 million yuan, accounting for just 8.21% of total revenue. In the first half of 2024, export business revenue was 76.26 million yuan, accounting for 6.79% of total revenue. The company stated that, as of now, it does not have any branches in the United States and owns no significant assets there.

In its announcement, ZWZ emphasized that the company has always adhered to the principles of legal and compliant operations since its establishment, strictly abiding by the laws, regulations, and relevant supervisory rules of the regions in which it operates. Regarding this incident, the company stated it will actively communicate with all parties, continue to monitor the progress of the situation, and take all necessary actions to minimize the impact on its business.

A market insider, who wished to remain anonymous, mentioned that ZWZ, as the leading enterprise in China’s bearing industry, has its production base and major sales markets domestically. Therefore, the impact of this incident on the company’s overall business may be limited. However, the company may face certain challenges in international trade and cooperation in the future.